Standard Life annuity margins down 60% post-Budget

Jenna Towler
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Annuity margins at insurer Standard Life were down 59% in the first half of the year due to the sweeping changes to retirement income announced in the Budget, latest results show.

The company said while UK operating profit was up 4% to £165m - compared to £159m in the first half of last year - the margin from UK annuity new business said was 59% lower. However, it added its total spread risk margin of £75m benefited from increased profit from online asset and liability management. It said the 4% operating profit bump was driven by a 6% increase in profit contribution from fee business to £178m. Chief executive David Nish (pictured) said: "Standard Life has continued to perform well in the first half of 2014, driven by our focus on delivering value for money for...

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