Standard Life came broadly within forecasts this morning with a 26 per cent rise in 9-month sales, helped by sales in the UK that already exceed the whole of 2005, but the insurer said pension lapses remained strong.
Edinburgh-based Standard Life, which listed in July after eight decades as a mutual, said group sales totalled £1.12 billion sterling ($2.13 billion), a result which was just shy of the average of analysts' forecasts of £1.13 billion but within the range of individual estimates of £1.08 billion to £1.24 billion.
In its core domestic market, life and pensions sales climbed 35 per cent to £921 million, at the higher end of expectations, as its focus on pensions made it a major beneficiary of the UK government's "A-Day" overhaul this year which made it easier for people to save more for retirement.
In the third quarter alone, UK sales rose 56 per cent. The insurer reported a 59 per cent jump in its Irish sales to £27 million, a rise it attributes to the introduction of new products.
Sales of Standard Life's key Self Invested Personal Pension (SIPP), together with income products which allow customers to draw down income from their SIPP, more than doubled on last year to £182 million.
But the insurer said it continued see pension lapses above the long term trend as customers cashed in policies following its share flotation and changes to UK pension rules.
In September the insurer announced a £100-million increase in provisions for customers cashing in policies.
"Net pensions inflows continued to be positive during the third quarter although there remains uncertainty around the long-term effects of the A-day reforms on customer behaviour," the insurer said in today's statement.
"In pensions, lapses continue above the long-term trend, as reflected in the provisions made at the half year. We continue to monitor carefully the current level of lapses."
The sales figures are on an annual premium equivalent (APE) basis, an industry-wide benchmark used to smooth out big sales of single-premium policies that might distort the picture.