BRITISH life insurer Standard Life yesterday reported weaker-than-expected nine-month sales, sending its shares lower, but said its capital position was strong despite the stock market slump.
Standard Life said its worldwide life and pensions sales amounted to 12.4 billion pounds (US$19.9 billion) in the nine months to September 30, little changed from 12.3 billion pounds in the same period last year.
At the start of London trade, Standard Life shares were down 6.9 percent at 185 pence.
"There was a slight miss against the consensus sales number. Standard Life has been one of the better performing life stocks in the United Kingdom," said Peter Eliot, an insurance analyst.
The Edinburgh-based insurer also reported a capital surplus of 3.4 billion pounds on September 30, compared to 3.5 billion pounds three months earlier, and said its capital buffer would fall to 1.9 billion pounds in the event of a 40-percent fall in equity markets from their September 30 level.
"Our FGD surplus is still strong in the event of further market weakness," the company said in a statement.
The Financial Groups Directive is an industry measure of capital adequacy which stipulates that insurers must hold a layer of capital over and above the minimum needed to meet their obligations to customers, plus a further buffer to absorb unexpected shocks.