Standard Life leaps by 51% in face of downturn

Repackaging investors' cash into new money-making schemes rather than chasing new business is helping Standard Life see off the worst effects of the consumer downturn, its chief executive said today.

Standard Life reported a better-than-expected 51% rise in operating profits to £534 million for the first half, flattered by a one-off reinsurance gain. "That shows the strength of our business model," said Sandy Crombie, "consolidating business already out there rather than selling in a market where it is increasingly difficult to win new business because of the downturn in discretionary spending".

UK life and pensions net inflows were down 3% to £1.4 billion, but global group net inflows were £3.3 billion, helping offset an £8.7 billion dive in value of assets under administration, leaving funds under management down 3.2% at £163 billion. The interim dividend is 4.07p.