An attempt to woo two distributors in 2008 came back to haunt Standard Life on Thursday, as it unveiled a 20 per cent fall in life and pensions new business sales for the first quarter of 2009.

The insurer had issued an investment bond in the first quarter of last year that, although attractive to savers, was not very profitable. The bond was sold in bulk through two unnamed UK distributors that Standard Life wanted to cultivate.