Standard Life Irish sales fall 6% over first half

Sales at Standard Life's Irish operation fell by six per cent over the first half, as the firm continued to reposition itself away from poorly-performing with-profits investment products.

In results issued yesterday, the company said its annual premium equivalent sales in the Republic had declined from €17.4 million last year to €16.3 million in the six months to the end of June.

Annual premium equivalent is a standard insurance industry measure based on 10 per cent of new single premium sales added to the value of regular premium sales. In a statement, Standard Life noted that its Irish business was "continuing its transformation from a heavy dependence on with profits".

Michael Leahy, chief executive of the Irish operation, acknowledged that sales had been hit by the decline in with-profits business. The proportion of the firm's investment business that is not with-profits has meanwhile risen from 49 per cent to 84 per cent.

Mr Leahy said he expects sales for the whole year to be ahead of 2004. He pointed to "very aggressive plans" for a new pension product launch in 2006.

The Irish business wants to emulate Standard Life's success with its self-invested personal pension in the UK. This type of product, which allows consumers to build their own pensions from a combination of assets such as stocks and property, is not currently available in the Republic.

The Standard Life group, said meanwhile that it was on track for an expected flotation in 2006 as sales in its key UK market rose 10 per cent, the first increase in more than two years. - (Additional reporting, Reuters)