Standard Life sales fall 20%
Insurer Standard Life blamed challenging markets for a 20 per cent fall in first quarter sales.
In the UK, life and pensions sales fell by 27 per cent to £2.5 billion, mainly due to falling value in its Pension Sterling Fund, Standard Life said.
The insurer decided to refund thousands of customers after the value of the fund fell and Standard Life was accused of misleading people about the fund.
Most customers where surprised to learn the underlying investments the fund was based on were actually mortgage-backed assets, rather than cash, as many had thought.
But the sales fall beat analysts' expectations and the firm said its capital surplus is strong.
Group chief executive, Sir Sandy Crombie, said: "Standard Life has delivered a solid underlying performance in the first quarter despite the impact of financial markets, which are significantly lower than a year ago.
"Although we see the challenging market conditions continuing, our strengths remain unchanged. We continue to focus on our capital strength, innovative and capital-lite propositions and the opportunities that come from our strong distribution relationships and excellence in customer service."
The capital surplus stands at £3.2 billion at March 31st, compared with £3.3 billion three months earlier.
Standard Life said the pensions and tax legislation introduced in the Budget will not have a "material impact" on future business but may encourage higher earners to seek tax planning advice.
Shares in Standard Life were down by 2.02 per cent by 10:30 BST on the FTSE 100.
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