What we're doing...

We’re focusing on developing products that are capital-lite and which deliver greater profitability. Our results in UK Group Pensions sales are a good example of this, as they have increased by 34%, while new business margins on this product increased from 1.4% to 2.1%. Being more efficient with our capital means we are in a better position to continue developing new products and other innovations, so we can continue to grow profitably.

We’re continuing to develop and diversify our distribution channels, build new relationships and invest in new markets. We’re also taking advantage of global opportunities and taking our most successful products and skills into new markets around the world. For example, in China, Heng An Standard Life is developing new distribution channels and moving into new provinces. By the end of 2008, the plan is for the business to be in 30 cities compared to 14 in 2007.

On 31 December, our investment management business had total funds under management of £143.4bn – an increase of 9% compared with 2006. The strong investment performance from our fund management teams has again been recognised this year with numerous awards, including the ‘Investment Manager of the Year and Specialist Manager of the Year (UK Equities)’ at the UK Pension Awards 2007.

We’re continuing to streamline our processes and enhance efficiency to reduce our costs, while maintaining our reputation for excellent customer service. An important example was bringing together our UK life and pensions, banking and healthcare operations into a new UK Financial Services division, to help in creating stronger propositions, working more efficiently and improving profitability.