"We are and will remain both," he said. "Our strategy puts investments at the heart of what we do."
In the firm's half-year results presentation, Skeoch said there had been some speculation about whether Standard Life was an insurer or investment manager. His elevation to CEO, replacing David Nish -- which takes effect today -- was previously cited as evidence of the firm's transition to an asset manager (see IERM, 19 June).
Operating profits from fee-based business reached £761m ($1.19bn) in the first half of 2015, compared with the £40m earned from spread/risk margin business – essentially the margin on its UK annuities book.
Two years ago, the fee-based business represented 75% of operating profit, compared with 95% today, said chief financial officer Luke Savage.
The spread/risk margin profits were down around 50% on the same period last year. "This included the expected £26m reduction in the benefit from asset and liability management, as fewer opportunities for more effective management of our assets exist in the current low-yield environment. This was accompanied by a reduction in the new business margin by £9m to £4m, caused by a 66% reduction in annuity sales as a result of the 2014 [UK government] budget changes," the company noted.
