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Standard Life has reported a 7% increase in assets under management and an 18% rise in operating profit for the first-half of the year thanks to market gains since Britain voted to the leave the European Union. Legal & General reported a 10% increase in operating profits for the same period thanks to growth in annuity sales.
That’s further good news for a sector that was hit hard in the immediate aftermath of the Brexit vote, with share prices tumbling on expectations that the fallout in the broader economy would hurt the firms. Equity markets have since recovered, as the Bank of England moved fast to shore up confidence and the UK’s ruling Conservative party also moved quickly to appoint a new leader and prime minister in Theresa May. Insurance company shares have also recovered somewhat, although they remain well below where they were prior to the referendum.