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Standard Life has reported a 31 per cent increase in first-half sales, with the insurer's performance boosted by the popularity of its pension products.

The group's worldwide life and pension sales climbed to £8.18 billion in the six months to June 30th, up from £6.24 billion in the corresponding period in 2006.

After reporting forecast-beating growth the Edinburgh-based business also confirmed that it is expecting to achieve a "significant increase" in sales margins when it reports full-year interim results next month.

Over the first half of the year Standard Life reported a 45 per cent increase in UK life and pension sales, which climbed to £6.95 billion.

Sales in the insurer's home market were driven by an 82 per cent increase in sales of self-invested personal pensions (Sipps), which allow policy holders to have more control over their investments.

During the first half sales of Sipps reached a total of £2.56 billion, up from £1.41 in the same period of the previous year, Standard Life said.

The company said that sales had benefited from an increase in contribution limits introduced at A-day, when a relaxation of pension investment rules came into force in April of last year.

Standard Life also reported "accelerated growth" in group pensions, as the company seeks to move away from less profitable pension products and fewer UK firms continue to offer final salary schemes for staff.

The former mutual said group pension sales in the UK climbed 49 per cent in the first half to £1.49 billion.

Gross mortgage lending was also up 29 per cent to £1.57 billion over the period, while healthcare sales climbed ten per cent to £11 million on an annual premium equivalent (APE) basis.

Welcoming the results, Standard Life chief executive Sandy Crombie said: "Our strong new business performance is continuing.

"We are launching new products into our chosen markets, and this is being supported by excellent investment performance and first-class service," he added.