Mutual life insurer Standard Life has said it remains on track for an expected IPO in 2006 as sales in its key UK market rose 10 per cent.
The Edinburgh-based society said overall insurance revenues for the first six months of 2005 rose 4 per cent to £619 million, boosted by a strong performance from its fund arm, Standard Life Investments, and a rebound in sales of UK life products and pensions to £459 million.
"This is quite a good set of results against the backdrop of us trying to reposition the business . . . This can give us the confidence that this business remains on track (for an initial public offering)," chief executive Sandy Crombie said.
Standard Life shocked rivals and customers in 2004 when it said it would abandon its previously cherished mutual status as tough new funding rules and declining demand forced it to turn from policyholders to the stock market for cash.
Standard Life's revenues in the United Kingdom had been falling since 2003 amid a sharp drop in the popularity of its once flagship product and customer concern over its finances. Standard's "with-profits" product was hit by falling returns.
The UK sales surge in the first half - due to a new personal pension product and higher sales of company pensions - comes after the group cut commissions to distributors, slashed policy payouts and moved out of some lower-margin products to cut costs and boost margins. It has also cut nearly 3,000 jobs.
Mr Crombie said Standard's share of the UK life and pensions market had risen to 9.8 per cent in the first quarter from 7.8 per cent in the last quarter of 2004.
He added a share of between 7 and 8 per cent was likely in the second quarter if Prudential booked a large pension-related deal it did in that quarter. Excluding that deal a share of between 9 and 10 per cent was likely.