Standard Life reaps reward

THE Equitable Life debacle has proved a bonus for Europe's largest mutual life assurer Standard Life as a flight to quality among savers helped power the group to a record year for new business.

The Edinburgh-based group, which last year saw off a challenge to its mutual status, also believes the introduction of stakeholder pensions increased awareness of retirement savings and helped its pension sales soar 77% in the year to 15 October. Pension and annuity sales surged 98% to £2bn, while individual pension sales rose 60% to £2bn.

Overall Standard Life, which has about £80bn under management, reported that worldwide new business premiums rose 61% to £8.3bn, with new premium income in its core British market ahead 76% to £6.3bn. Sales of its with-profits bonds leaped to £1.4bn, but its mortgage book was virtually static at £5.56bn. Standard Life has 2.4m members, a net gain of 120,000.

A spokesman for Standard Life, which maintained bonuses on its with-profits policies this year, said it would review its position on bonuses in January. It also reaffirmed the commitment of managing director designate Iain Lumsden to its continued mutuality. He formally takes over from Scott Bell next March.