Standard Life profits joy, but payouts fall

The insurer said sales in the 12 months to the end of December were down 6% at £15.6 billion but operating profits will still be "ahead of market expectations".

The news comes as Standard Life cuts payments on endowments and pensions due to "extreme investment conditions".

It is also facing the ire of 100,000 investors who have found that money they thought was in a safe cash fund is exposed to toxic debt.

Finance director David Nish said: "We hope that customers will look at Standard Life and see a company that is robust, that takes its obligations seriously."

Standard has £3.5 billion of surplus capital, enough to withstand further turmoil in the markets, say analysts.

Funds under management fell by 14% to £124 billion.