Standard Life in a 'healthy position'

The Edinburgh-based company, which recently appointed finance chief David Nish as its new chief executive, said operating profits of 919m represented a good performance in an uncertain year for financial markets. City analysts had forecast a figure of around 662m.

It added that it had started the new year in a healthy position after the return of investor appetite resulted in a 38 per cent leap in UK sales to 2.88bn over the last three months of 2009.

The company, which employs around 10,000 people, made savings worth 47m last year towards its target of 75m of efficiencies by the end of 2010. It will look to boost margins with another 100m of savings by 2012. At the same time, it will spend more than 200m to develop and promote its products in 2010.

Mr Nish said: "2009 was a successful year in which we delivered against our strategic objectives and built a strong platform for future profitable growth."

Standard's UK life and pensions business reported a 3 per cent drop in operating profits to 649m last year. Assets under administration increased by 11 per cent to 105.6bn, while the contribution from new business decreased to 139m from 199m.

Standard Life shares closed at 208.3p, up 4.1p.