The British mutual insurer, Standard Life, has recorded a drop in its market share because of consumer concerns about its financial strength. The news came earlier this morning when the company announced flat first half sales.
Standard Life's share of the UK market dropped to 10.2% in the first quarter of this year from 11.1% at the end of last year. Corporate pensions and general insurance business helped make up for falling life and pension sales.
The company believes that its UK sales fell because consumers were wary after its negotiations with the British financial regulator over its financial strength.
The 179 year old firm shocked Britain's insurance sector in January when it said it had to increase reserves to meet new reserving rules for life insurers and was to ditch its mutual status to look beyond policyholders for capital.
The company, which is preparing to sell shares on the stock market in 2006, said it was financially secure. According to the company's chief executive, Sandy Crombie, the company is witnessing strong growth outside its UK life and pensions businesses.
