Standard Life's new UK life and pension business has fallen by 13 per cent from £483m for the first half of last year to £417m this year.
The decline has been put down to a 22 per cent fall in individual pension sales from £170m to £133m and a 23 per cent fall in investment business from £57m to £44m.
Protection sales drop-ped by 62 per cent from £23m to £9m following Standard's decision to hold back from relaunching into the market while it focuses on new business processing.
Confidence in with-profits has been weak, with new business accounting for only 17 per cent of Standard's total life and pension book compared with 25 per cent last year. The company says this is one of the main factors behind its proposed demutualisation.
There was good news for Standard Life Bank, which made a profit of £6m for the first six months of the year, up from £2.1m.
Standard Life Investment funds under management rose by 11 per cent to a record £86.6bn.
Healthcare claims rose in the first half of the year, contributing to a £4m loss for Standard Life Healthcare despite annual-premium income in force rising by 7 per cent.
Group chief executive Sandy Crombie says: “There has undoubtedly been some consumer resistance to our products in the first half of the year.
“In order to maximise the value of the group, we have to keep our eye firmly on the ball of running the business so we have set aggressive business targets for each of the bus-iness units and these targets will be pursued vigorously.”