Shares digital

Standard Life (SL.) 232.5p

The shares jumped 11% after full-year earnings beat market forecasts. The UK’s fifth-biggest insurer increased annual profit by 43%, helped by a one-off boost from a review of its annuity business and cost controls. (Read the full story: www.sharesmagazine.com/node/3642)

Shares says: The company is on about ten-times’ next years’ earnings, compared with high single-digits for its rivals. This premium is not justified. HOLD

The Times says: Standard Life’s results yesterday were so good it was almost embarrassing. The forecasts in the City had been much gloomier and almost every analyst was wrong-footed.

FT says: Given that life insurers are now essentially wealth managers, does Standard Life’s ten times’ forward price/earnings multiple deserve to be twice that of some retail banks?

The City says: While concerns remain about potential competition in Sipps the new business result has to go down as a distinct positive surprise.