Standard Life yesterday posted a 17 per cent rise in first-half sales as key UK pension products lifted new business at home, and the life insurer said it was "very optimistic" for the rest of 2006.

In its first earnings update since its July stock market debut, Britain's fifth-largest life insurer said worldwide sales rose to £745 million.

UK life and pensions sales climbed 25 per cent to £594 million, with a 36 per cent year-on-year increase in the second quarter boosted by individual pensions and investment bonds as Standard Life profited from the govern-ment's "A-day" reforms, which made it easier for consumers to save more for retirement.

"We have great momentum in the UK business at the present time," Trevor Matthews, Standard Life's head of life and pensions, said. "We're very optimistic about the rest of the year, we think the year will continue to move along quite well."

Sales of Standard Life's key Self Invested Personal Pension (SIPP) - one of a handful of higher margin products the insurer has focused on since its 2004 strategic review - climbed to £96 million in the first half.

Together with drawdown products, which allow customers to draw down income from their SIPP, those sales rose 75 per cent.

Mr Matthews brushed aside concerns the SIPP market could see more competition as rivals such as giant Aviva move in. "We've been very happy with the SIPP product and at this stage we don't see any major competition," he said.

Standard Life said its UK life and pensions market share increased to 8.6 per cent from 7.4 per cent at the end of 2005.

A former mutually-owned insurer, Edinburgh-based Standard Life listed on the London stock market last month in the biggest UK initial public offering in six years.

Its shares have since climbed two per cent and are trading at a discount to the UK insurance sector average at just above embedded value, an industry measure of worth.

The shares ticked up 1.2 per cent after the results to change hands at 253 pence.

"The trends of the first quarter continued into the second quarter and especially the focus on less capital-intensive, more profitable products, though we'll only see the impact of that in September, when we get the half-year figures," said analyst Roman Cizdyn at Oriel Securities.

Standard Life will release its full earnings numbers including margins on its sales next month.

"It's a good read-across for the UK life and pensions market as a whole," Cizdyn added.

First-half results so far have been mixed for the UK sector, with UK-focused Legal & General posting strong sales figures and raising its outlook for the market, while larger rival Prudential said it had faced tough competition in areas including high-margin bulk annuities.

Shares closed down 2.5p at 290.