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The Markets
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Proactive UK has moved.
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Insurance

Standard Life to feel pain from pensions shake-up

The Scots insurer said impact of sweeping changes to the long term savings industry announced in the 2014 Budget are set to have impact on the finances going forward.

Interims from Standard Life (LON:SL.) provided a rather mixed picture of progress in the year to date.

The positives first: cost savings from its acquisition of fund manger Ignis, bought for £390mln last year, are on track to hit the planned £50mln, while the integration is going well.

However the Scots insurer said impact of sweeping changes to the long term savings industry announced in the 2014 Budget are set to have impact on the finances going forward.

Specifically, the full year contribution from annuity new business is expected to reduce by £10-£15mln in the current year, while asset liability income is expected to fall by £30-£40mln.

The headline numbers revealed steady if unspectacular progress. Operating profit grew 6% to £290mln, while the dividend nudged up 7.5% to 6.02p.

Departing chief executive David Nish told investors: “The investments we have made in our UK business in recent years leave us well positioned to benefit from evolving customer needs and regulatory changes.”

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