Standard Life results driven by strong UK showing

Life assurance behemoth Standard Life saw profits rise in the first half after a strong performance in the UK, its biggest market.

Operating profit before tax was up 15% to £302m with the firm reporting group assets under administration (AUA) of £204.2bn, up 3% from £198.4bn the year before.

The company said AUA was driven by resilient, although lower, flows into its newer fee based products and favourable market movements.

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In the UK profits rose 62%, from £87m in the first half of 2011 to £141m this year.

The significant increase in the UK partly offset a 30% drop in profits in Canada, which the firm put down to the timing of business restructuring and low interest rates.

"The UK results, where profits benefited from higher income and significantly lower costs, demonstrate the strength and scalability of our propositions and our brand," said Chief Executive David Nish.

"Over the past few years we have built a scalable business that is capitalising on the opportunities that exist in our chosen markets - combined with its leading market positions, we expect the UK business to continue to perform well."

He added the firm was "well prepared for the regulatory and market changes on the horizon", no doubt referring to the implementation of the Retail Distribution Review.

The new regulations aim to change the relationship between insurance brokers and life assurance companies by providing greater clarity and protection for consumers.