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8: Conclusions

Crombie hinted that he was set to remain at the helm well into the
future when he unveiled, on 12 March 2008, results ahead of
market expectations. Profitability was up strongly. In 2007,
European Embedded Value (EEV) operating profit before tax
increased by 43% to £881m (2006:£614m), delivering a return on
embedded value (RoEV) of 11.5% (2006:£8.9%) significantly
exceeding the 9-10% target set for the year. Underlying profit
before tax on an IFRS basis (International Financial Reporting
Standards) increased by 32% to £714m (2006:£540m). The
figures showed that adverse lapse experience and strengthened
operating assumptions reduced embedded value operating profit
by £249m (2006:£266m charge), after an offsetting positive effect
in Canada. Crombie said:

“We have beaten all our profitability and efficiency
targets for 2007 and achieved record sales, a platform
which we will build upon for further growth in years to
come.”

“Against an uncertain economic backdrop we have
made a good start to 2008 and are working to improve

our core profitability.”
Source: 2007 Preliminary Results
(12/03/2008)

The company announced a full year dividend of 11.5p, implying
growth of 6.5%.

External communications are improving. Likewise, market
relationships are coming into focus. Standard Life continues to
work with the FSA to support them in their strategic objectives to
promote efficient, orderly and fair markets and to help retail
consumers achieve a fair deal, using a principles-based approach
delivering a lighter regulatory touch for firms that pose less risk.

For Crombie – he sees the company as an 18-months old
youngster, with a strong brand, talented and experienced staff with
good supporting IT systems. SLI is a related but diversified part of
the business. Asset Management is capital ‘lite’ but generates