Tax cheer for life insurers

Changes in the tax rules for pensions and a move to self-invested pensions are bringing benefits to life insurers, says the recently de-mutualised Standard Life. The company increased sales of insurance products by 17 per cent to £745 million in the first half year, while UK life and pension sales grew 26 per cent to £594 million and self-invested pension sales spurted 75 per cent higher to £105 million.

Corporate activity continues in the sector, with another life insurer, Resolution, preparing for a £1.6 billion rights issue to fund its purchase of Abbey’s life business. Broker Jardine Lloyd Thompson has begun consultations with staff over closing its defined benefit pension scheme, but, in the wake of flat profits and a downbeat outlook statement, denied this represented a clearing of the decks for a bid from another group.

Lloyd’s insurance group Heritage has listed on AIM after raising £18 million at 75p, a sum significantly scaled back from the original plan. The HCC group of Houston, Texas, has a big stake in Heritage, which wants to boost its underwriting capacity by £35 million to £265 million.

The company’s Syndicate 2100, with Nicholas Jones as lead underwriter, is a leading provider of cover for worldwide short-tail commercial property risks. It also writes non-US professional indemnity and other liability risks.