Standard Life sales top forecasts

Standard Life listed on the London Stock Exchange in July 2006

Insurance firm Standard Life has reported sales that topped analysts' forecasts, helped by demand for self-invested personal pensions.

Pensions sales rose 31% to £8.18bn in the six months to the end of June compared with a year earlier, it said.

Underpinning the growth were UK sales which added 45% to £6.95bn.

Standard Life has benefited as consumers buy self-invested personal pensions, or Sipps, giving themselves more control over their investments.

Interest in Sipps was stimulated by the relaxation of pension investment rules in April 2006, known as A-day, and it has been central in Standard Life's earnings performance.

The company said that the value of its Sipps funds under management had increased to £6.3bn up from £4.3bn at the end of last year.

Bid rumours

Over the weekend Standard Life was mentioned as a possible suitor for insurer Resolution.

Last month, Resolution agreed to merge with Friends Provident, but news of the proposed deal has put rival insurers on alert.

Reports said Standard Life had appointed Merrill Lynch as an adviser as it mulled a bid for Resolution, which is also reported to be a target for Pearl.

Old Mutual and Swiss insurer Zurich have both been mentioned as possible suitors for Friends Provident.