Skandia's profits rise, though life assurance and funds sales suffer

Skandia attributed its profit growth to the resilience of its business model, which has enabled it to continue to generate strong positive net client cash flows of £1.1bn for the half year, despite difficult market conditions in the UK. Overall life assurance sales were down 16pc to £327m on an annual premium equivalent (APE) basis and gross sales of mutual funds were down 21pc to £1bn. However, Skandia International saw strong life assurance sales, up 2.4pc on the corresponding period in 2007. Assets under management were broadly consistent with the first half of 2007, down 3.0pc to £...