Insurer prospers in tough conditions

It also posted a rise in assets under administration for the first nine months of the year.

Standard Life, Britain's fourth biggest insurer by market capitalisation, said assets under administration for the nine months to the end of September rose 13 per cent from last year to 192.4bn ($309.1bn).

The company said it had enjoyed higher sales of fixed interest savings products and more business from institutional clients. In August, Standard Life reported a 10 per cent rise in its first-half operating profits, helped by growth at its overseas divisions.

"The momentum we have built through the year positions us well to increase future cash flows and profit generation," chief executive David Nish said in a statement, adding that the company was well placed to back its progressive dividend policy.

Earlier in the year, Standard Life told investors and analysts that it was doubling its level of investment in 2010.

The company said that this accelerated investment programme was progressing well. In the UK, its employee wealth and benefits platform for the corporate market was also doing well.

The statement added: "While the economic background remains challenging, the underlying demographic and regulatory trends in our key markets continue to support our future growth potential.

"In particular, the UK remains an exciting place for Standard Life to do business, with the investment we are making in our market-leading products and propositions positioning us well to capitalise on the significant movement in corporate and retail assets that will arise from changes in the regulatory environment and customer behaviour."

It added that the prospects for Standard Life Investments remained strong.

The statement went on: "We see significant opportunities in all our core markets and are confident that the investments we are making will lead to continued strong growth in assets.

"This positions us well to increase future cash flows and profit generation, in turn supporting our progressive dividend policy."