Standard Life announces better than expected results

Shares in Standard Life soared yesterday after the Scottish insurer announced better than expected results.

The shares, which reached 349½p in May 2007, increased 29p yesterday to 247¾p in early trading - an increase of over 12%.

The insurer unnerved investors last year with a surprise £4.5 billion bid for Resolution Life but was humiliated by rival Pearl in a takeover battle.

The group revealed a 43% increase in profits for full year profits to £881 million and a first full year dividend of 11.5p, which will result in a decent bonus for those who gained free shares at the flotation.

Chief executive Sandy Crombie said we’ve met or exceeded all of the targets we set for ourselves. He insisted that Standard Life had no exposure to US sub-prime mortgages.

Going forward, the strategy remains unchanged. Organic growth will be the primary focus, but you can expect us to take a look at opportunities that come along. They will be few and far between, said Mr Crombie.

The entire industry is suffering from seeing customers withdraw savings as the squeeze on the economy bites and they grow fearful about being exposed to the stock market.

Mr Crombie is to step down from the insurer but questions remain about who his replacement will be.

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