Insurer Standard Life has reported a 22 per cent fall in 2003 worldwide new
business sales today but said it was optimistic after demand rose at the end of the year.
Standard Life, Europe's largest mutual insurer, and rivals have suffered from the worst stock market slump for a generation. Sales have been squeezed by customers wary of investments and plunging asset values have eroded insurers' capital.
"We have seen a return in confidence in both the UK and [financial adviser] markets towards the end of 2003, after what has been a tough year for everyone in the industry," chief executive Mr Iain Lumsden said in the statement.
The British insurer said new business sales fell to £1.42 billion sterling ($2.47 billion) in the year to November 15th, from £1.82 billion the previous year.
The drop was mainly at Standard Life's core UK business, where new business slumped 24 per cent to £1.08 billion.
Sales also dropped at its second-biggest business in Canada, but rose in Germany and India.
Standard Life is the latest insurer to give upbeat comments on the outlook. British rival Friends Provident said in October that equity markets were recovering, though Friends Provident matched its comments with a 24 per cent jump in third-quarter sales.