4th Aug 2015 06:48
LONDON (Alliance News) - Standard Life PLC on Tuesday said it expects a lower contribution to its results for 2015 from annuity new business in the wake of changes to UK pensions rules that mean retirees are no longer required to purchase them.
The Edinburgh-based investments and savings company said it expects annuity new business to fall by about GBP10 million to GBP15 million in 2015.
The contribution from asset liability management is to fall by about GBP30 million to GBP40 million, Standard Life said.
The news came as Standard Life reported assets under administration of GBP302.1 billion on the basis of continuing operations at the end of June, up from GBP296.6 billion six months earlier, driven by demand for investment products and services, as well as the GBP390 million acquisition of Ignis Asset Management in 2014.
Operating profit before tax from continuing operations increased by 6% to GBP290 million in the first half after a GBP39 million reduction in spread/risk margin, Standard Life said.
Pretax profit fell to GBP210 million in the six months, compared with GBP332 million in the corresponding half of the prior year.
Standard Life increased its interim dividend by 7.5% to 6.02 pence.
By Samuel Agini; [email protected]; @samuelagini
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