Operating profits across the UK units of Standard Life fell last year due to a fall in income and higher acquisition expenses.
Operating profit before tax last year was £220m, down from £234m the previous year.
Although the group's fee-based revenue increased to £625m, from £593m, its spread/risk margin fell to £75m, from £148m in 2010, as it strengthened its annuity reserves.
The net effect was a drop in income from £741m in 2010 to £700m in 2011.
Maintenance expenses, relating mainly to costs associated with recently-acquired businesses including Focus Solutions, increased to £332m, from £312m.
Assets under administration across the UK rose 2% to £122bn, largely due, it said, to a 36% increase in wrap assets since 2010.
Standard Life Investments (SLI) saw profits increase by 21% - from £103m in 2010 to £125m last year - thanks in part to a 16% rise in revenues.
However, third party net inflows, still positive at £4.28bn, were down significantly on the previous year's £6.2bn. UK mutual fund net inflows were £1.64bn, down from £2.22bn in 2010.
Most of its 2011 sales were into high-margin products including UK wholesale and the GARS asset class.
The group said it will continue to support advisers through changes brought about by the Retail Distribution Review, particularly because it was the leading provider in the nil commission market.
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