Coinciding with Standard Life's announcement of better than expected 2006 results, the UK insurer is set to cut an additional 1,000 jobs or 12% of its workforce, as part of its cost-saving initiative, which aims to save GBP100 million a year by 2009.

According to the Financial Times, Standard Life has already axed 4,500 jobs since 2004. The BBC also reported that the majority of its staff are based in Edinburgh and hopes that most of the job losses will derive from normal staff turnover.

The insurance provider witnessed a 55% rise in its operating profits to GBP614 million, while new business worldwide increased by 47% to GBP14.2 billion.

Sandy Crombie, group chief executive of Standard Life, said: Notwithstanding this strong progress, there is more we can do to increase the efficiency of our operations and to deliver further earnings growth and higher returns. Today we announce the next phase of our continuous improvement strategy, which will deliver a leaner and fitter Standard Life.

These initiatives are in addition to the targets announced at the time of the IPO and will enhance our ability to grow profitably in the medium term. We are on track to achieve our return on embedded value target for 2007 of 9% to 10%, and increasing thereafter.