Whoever said insurance companies lacked razzmatazz? Against a backdrop of lifeless financial stocks, Standard Life leapt more than 13 per cent on Wednesday following its full-year results. The UK life insurer needed to impress. It was reeling from the loss of the head of its retail business and its failed bid for fellow UK insurer, Resolution. Over the past 12 months, the shares have fallen by a third, compared with a 13 per cent decline for its European peers.

Standard Life’s results show that it is progressing nicely since its demutualisation. Back in 2006, it barely made money from new business and total cashflow generation was negative. Today Standard Life uses less capital – and can therefore release more cash – to win new customers because it is moving away from paying advisers big commissions. Standard Life has also benefited from the introduction of individually managed pension funds in the UK, and deserves credit for cutting costs and staying clear of dodgy US mortgages.