View more on these topics

Standard hit by pension lapses

Standard Life says it has seen pension lapses above expectations and will make further provision for lapses next month.

Its new business results for 2006 show UK life and pension sales rose strongly by 69 per cent to £11.4bn from £6.7bn in 2005 on a present value of new business premiums basis.

Standard set aside provision of £100m for lapses last September as a result of increased lapses following the delayed effect of A-Day due to the company’s demutualisation.

Group chief executive Sandy Crombie attributed the 69 per cent growth in life and pension sales to the continuing positive influence of A-Day changes and investment performance.

Standard says it has cont-inued to focus on profitable areas of the market which offer favourable margin opportun-ities and, as a result, single-premium business outstripped growth rates of regular-prem-ium business at 89 per cent compared with 49 per cent.

On an annual-premium equivalent basis, total Sipp and drawdown sales grew by 150 per cent to £395m from £158m.

But individual pension sales fell by 7 per cent to £126m from £135m, which Standard put down to customers preferring Sipps due to the closure of its executive pension and individual buyout plans to new business after A-Day.

Sales of investment bonds rose by 66 per cent to £185m from £112m, which Standard says was driven by adding 57 external fund links.

Crombie says: “I believe our successful demutualisation has given Standard Life a platform on which to build continued growth in 2007 and beyond. We have seen particularly strong life and pension sales in the UK, driven by single-premium business such as Sipps and investment bonds. External fac-tors such as A-Day have had a positive influence.”

Recommended

Undercover tactics could mean jail for insurers

Staff at insurers and lenders may face up to two years in jail if they use unscrupulous practices to gain information on clients.The Government is proposing to amend section 60 of the Data Protection Act to increase penalties for deliberate and wilful misuse of personal data following a lengthy consultation.The Information Commissioner’s Office claimed last […]

Imla pledges more support for members

Brokers and packagers have been promised greater support from the Intermediary Mortgage Lenders’ Association, which has admitted that it has so far failed to represent its members adequately in the market.Former Council of Mortgage Lenders’ deputy director general Peter Williams was appointed Imla executive director last September, and he promises that the trade body will […]

NU’s business is boosted by A-Day strategy

Norwich Union’s total UK life and pension new business increased by 25 per cent last year to £11.5bn from £9bn.But after the figure is reduced by £361m for lapses, the total sales on a present value of new business premiums basis is cut to £11.1bn, which represents growth of 21 per cent.Parent group Aviva says […]

Two most vulnerable groups hit worst by inflation, says Alliance Trust

The over 75s and poor families are hit hardest by inflation, according to a new study by Alliance Trust. Even though headline inflation has dipped, latest show that the over-75s are still the age group being hardest hit by inflation. The elderly faced an annual inflation rate in January of 4.2 per cent, which is […]

The savvy consumer

In last year’s FCA thematic review of the mortgage market, one of the key things highlighted was the “savvy consumer”. That’s the client who comes in the door with a very clear idea of what they need and expect you to get them it. They don’t think they need advice, they have after all consulted […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com