Standard Life adapts to change

Profits from annuity sales fell from £59m to £22m, and the group expects a further £10m-£15m drop in 2015. But while the annuities fall may not have been expected at the beginning of the year, it was more than offset by a 30 per cent gain in operating profit to £257m at Standard Life Investments, which saw total assets under management balloon 45 per cent to £245.9bn.

The growth of that division is further evidence the company is shifting its core business focus from insurance to asset management. Indeed, assets under administration grew 38 per cent on a continuing operations basis during the period, largely strengthened by the £60.5bn of assets acquired in the £390m purchase of Ignis Asset Management. But Standard Life has also been rationalising its international operations. It sold off its Dubai interests in November, and shareholders are in line to receive a special return of £1.75bn by way of a B/C share scheme - equivalent to 73p per share - following the sale of its Canadian operations to Toronto-based Manulife. (A share consolidation is to follow).

The company continues to benefit from other political reforms. The addition of 340,000 new pension auto-enrolment customers during 2014 means Standard Life now has 1.6m workplace customers, and expects to further increase market share in the next two years. Fees will follow.

Broker Panmure Gordon expects earnings per share of 27.8p this year, rising to 31.6p in 2016.