First Half Profits For Standard Life Look Good
Insurance pension group Standard Life reports a 51% profit growth during the first half of the year. Sales are reported to have come from international pension sales including a deal to protect itself against the risk of people living longer, says the Telegraph.
The deal was between Standard Life and Canada Life which lead to a pre-tax profit of £534 million, compared to £353 million in 2007. The deal was designed so that SL could reinsure £12 billion of its UK annuity liabilities against the potential risk of its members living longer lives. Therefore, £120 million in capital was has been held back in reserves.
Standard Life sources revealed worldwide sales of life and pensions increased 5% to just over £9 billion, despite the credit crunch’s pessimistic outlook. Although there were strong profits in their insurance division, their mortgage sector took a hit due to the declining housing market.
Life assurer Friends Provident on the other hand has seen a 20% decrease in first half profits this year due to the housing slowdonw. Similar to Standard Life, FP saw international sales increase by an astounding 57%, due to a particularly robust performance in Hong Kong.
The continual slump of the UK housing market has led to a reduction in mortgage protection sales while group and individual pension sales either stalled or dropped.
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