Shares of Standard Life surge as company reports increase in profit

Shares of British insurance company Standard Life PLC surged Wednesday after the company said full-year profit rose 64 percent because it improved profit margins and won new business.

Net income for the full year increased to 465 million pounds (US$936.3 million; euro608.5 million) from 283 million pounds in the previous year, the company said in a statement. Revenue fell 8 percent to 3.6 billion pounds (US$7.2 billion: euro4.7 billion).

"We have beaten all our profitability and efficiency targets for 2007 and achieved record sales, a platform which we build upon for further growth in years to come," said Chief Executive Sandy Crombie.

European embedded operating profit, a measure used by analysts, rose 43 percent to 881 million pounds (US$1.76 billion; euro1.2 billion), Standard Life said.

The shares rose 12 percent to 245.5 pence (US$4.93; euro3.21) on the London Stock Exchange.