View more on these topics

Standard sets aside £100m to pay for post-float exodus

Standard Life has set aside £100m to plug losses caused by falling persistency rates and people cashing their policies after netting demutualisation windfalls.

Standard Life says its demutualisation has delayed the impact of A-Day on its pension business and it expects increased pension lapses caused by A-Day to continue until April 2007.

The firm is putting aside a pre-tax provision of £100m to cover expected lapses, with £79m of the amount for A-Day-related lapses and the remaining £21m for demutualisation related lapses.

The provision will be taken out of its pre-tax operating profits which cuts Standard Life’s profits to £206m in the first half of this year compared with £395m for the full year of 2005 calculated on a European embedded value basis.

UK life and pension new business grew by £78m on an EEV basis in the first half of the year compared with £27m for the full year 2005.

The present value of new business premium for UK covered life business totalled £4,330m in the first six months of this year boosted by strong Sipp and investment bond sales. This compares with new business of £6,455m in the whole of 2005.

Standard Life Assurance chief executive Trevor Matthews says: “We were essentially immune to the A-Day effect before our demutualisation but now it is taking place. A-Day has caused people to look at their pension arrangements and people have consolidated them. There is a bubble effect going on here and our assumption is this bubble will continue to the end of the tax year.”


New ScotProv form aims to cut non-disclosure

Scottish Provident has repriced premium rates on its death and critical-illness insurance plans and redesigned its application form to reduce non-disclosure. It has cut the majority of its rates but some have increased. Intermediaries will get an extra 10 per cent commission if they submit business online. The application form has been redesigned to reduce […]

P/e lessons

Dividend yields are not the only value that an investor might hope for in holding equities as the vast majority of companies earn profits significantly higher than that required to maintain or even increase their dividend payments

Newcob on block

This month sees a key milestone in the FSAs much discussed move towards more principle-based regulation, when we consult on proposals for a radically revised conduct of business sourcebook (Newcob), to come into effect from November 2007.We intend this to be a step in encouraging firms and senior management to rethink their approach to regulation […]

CII unveils Advanced Diploma

The Chartered Insurance Institute has unveiled its Advanced Diploma in Financial Planning which forms the final part of its new financial planning exam framework.The CII says the diploma is designed to develop specialist financial planning capabilities and provide the gateway to Chartered Financial Planner status.It is made up of five units – personal tax and […]

Allianz Technology Trust – April 2017

Welcome to the latest update for Allianz Technology Trust PLC from the Trust’s portfolio manager, Walter Price. Portfolio review The Trust’s NAV returned 4.3% , outperforming the Dow Jones World Technology Index return of 2.8%. In US dollar terms, the portfolio gained 4.8%. During the month, stock selection contributed to relative performance, and industry allocation […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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