Pension freedoms dent Standard Life's H1 profits

A fall in fixed annuity sales has been attributed to the drop in its UK profits, as the firm said the drop in its spread/risk margin from £75m to £38m was "expected".

However assets in its drawdown proposition increased by 12% to £12.9bn.

Standard Life saw assets under administration in the UK rise to £130.4bn from £128.1bn, which it put down to a 15% increase in regular contributions into UK workplace pensions, as well as ongoing growth in assets on its Wrap platform and strong demand for its drawdown proposition.

The number of adviser firms using its Wrap platform has increased from 1,340 to 1,405.

Keith Skeoch, chief executive of Standard Life Investments, is set to replace David Nish as group chief executive this week.

David Nish, Chief Executive, commented:

"Our UK fee based propositions continue to build momentum with regular contributions into our workplace pensions up 15%. The strength of these propositions, investment solutions and our market positioning means we have been able to help our customers with the new pensions regulations and continue to support them as saving for their futures becomes increasingly front of mind.

"It has been an absolute privilege to lead Standard Life for the last six years and to help build our business into the strong global player it is today. I wish Keith and the inspirational people across all of our Group every success for the future. Standard Life is very well positioned to deliver ongoing growth and to help our customers and clients to save and invest, so that they can look forward to their financial futures with confidence."