Life insurer Standard Life is lifting its efficiency targets after delivering profits ahead of market expectations in 2009.

‘We are announcing today that we will target a further £100m of efficiency savings by 2012. These savings, which will improve new business margins, will be achieved through transforming our operations to become lower cost and scalable, while maintaining the quality of customer service,’ claimed chief executive officer, David Nish.

Underlying profit before tax in 2009 rose to £291m from £154m the year before, while European Embedded Value (EEV) operating profit before tax dipped to £919m from £933m. That trumped market expectations of a figure around £665m.

Profit attributable to equity shareholders after tax more than doubled to £213m from £100m but the diluted underlying earnings per share (EPS) only edged up to 12p from 11.7p.

On an EEV basis, diluted operating EPS eased to 29.1p from 29.8p.

Gross earned premiums held steady at £3,562m from £3,564m (restated) in 2008.

The group achieved a net investment return of £13,174m in 2009 compared to a deficit of £14,162m the year before. This contributed significantly to a net revenue figure of £17,435m for 2009, versus a net revenue deficit of £16,226m in 2008.

Net flows across the group were up 51% to £6.5bn from £4.3bn in 2008 while group assets under administration climbed 15% to £170bn from £148bn in 2008.

The company is doubling the level of growth investment in its business in 2010 and will spend more than £200m to further develop and market its corporate and retail propositions. The company plans to launch a new Employee Wealth and Benefit platform later this year.

A final dividend of 8.09p has been proposed, up from 7.70p at the same stage last year. Total dividend payments for 2009 come to 12.24p, up 4% on 2008’s payments of 11.77p.

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