Mutual life insurer Standard Life said this morning its sales fell 6 per cent last year from 2004.
Standard Life, which is expected to be valued at £4 billion to £6 billion when it lists in London this summer, said worldwide fourth quarter sales tumbled 26 per cent to £329 million (€482 million), taking 2005 sales to £1,238 billion.
Standard Life said sales were hit by its decision to cut commissions to distributors. It is also turning away unprofitable business as it seeks to turn around its fortunes after a bad few years.
The insurer said sales in Germany slumped 88 per cent in the latest quarter compared with the fourth quarter of 2004, when tax changes had boosted sales.
Standard Life said self-invested personal pension (SIPP) single premium sales jumped to £1,109 billion in 2005 from £359 million in 2004, with fourth quarter sales rising to £329 million from £117 million.
Standard Life is expected to raise at least £1 billion as part of its flotation to shore up its balance sheet. The Edinburgh-based society opted to float after a strategic review last year, making a U-turn after fighting off an attempt in 2000 by some members to force it to demutualise.