Standard Life exudes confidence about IPO, posts decent first-half profits |
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Wed, 24 Aug 2005 00:35
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LONDON - Britain's biggest mutual life insurer Standard Life has exuded confidence about its upcoming IPO in the next year and has also said that this confidence stemmed form the fact that its sales segment has grown by over 10 percent. This is the first such jump in sales in nearly two years.
The group released the results of the first half of 2005 and the figures brought plenty of cheer indeed. Overall insurance revenues climbed by 4 percent to £619 million. This surge was aided in a large measure by the exceptional performance of Standard Life Investments as well as the resurgence of sales in UK life products and pensions that rose to £459 million. The Edinburgh-based company also said that demutualisation was necessary to ensure that the group remained strong. The IPO that is expected to be floated in 2006 would net small fortunes for Standard's 2.6 million policyholders.
Commenting on the group's exceptional performance in the first six months of the year, Chief Executive Sandy Crombie said, "Standard Life is still a business in transition. We are not chasing market share, we are chasing quality business. This is quite a good set of results against the backdrop of us trying to reposition the business...This can give us the confidence that this business remains on track for an IPO." Standard's new self-invested personal pension (Sipp) products segment has also given a good account of itself with sales of £60 million in the first half of 2005. The group says that it is going to remain focused on this segment since it represents the best opportunity for growth in the current scenario.
Standard was also very positive in its outlook for the remainder of the year with Chairman Brian Stewart saying, "I am confident they demonstrate we are in a strong position to meet the challenges and opportunities that lie ahead."
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