STANDARD Life has enjoyed strong growth in the latest quarter amid volatile market conditions as pension reforms in the UK boosted demand for its products.

The Edinburgh-based life and pensions giant grew total assets under management by £2.4 billion in the three months to September helped by winning business in the UK and overseas.

Analysts had expected the firm to add around £1bn assets net of withdrawals and market movements.

Keith Skeoch, who succeeded David Nish as chief executive in August, said demand for the firm’s investment management expertise has increased in response to signs interest rates will remain at record low levels for some time.

"People are thinking about the composition of their portfolios in a regime where growth is slow, inflation is very low and therefore interest rates are lower for longer," said Mr Skeoch.

Noting much of the business Standard Life has won this year has come from overseas, Mr Skeoch said it was important for the firm that the UK remains part of the European Union.

Mr Skeoch, who ran the Standard Life Investments arm until taking charge of the group, said the integration of the Glasgow-based Ignis asset Management business it bought for £390m last year is on track.

He shrugged off the fact clients withdrew £2.3bn funds from Ignis, net of £1.7bn new investments, in the first nine months of this year. Some withdrawals occurred in the first quarter following the departure of a team of fixed income specialists headed by Russ Oxley.

A pension fund transferred a £1.9bn mandate in the second quarter to a passive, index-tracking manager.

Mr Skeoch told analysts he hoped Ignis flows would begin to stabilise in 2016.

Chief financial officer Luke Savage noted Standard Life has said it plans to complete the integration of Ignis before buying any other fund managers. The integration is due to be completed next year.

However, he said Standard Life wants to buy more advisory businesses. Such deals could help the company capitalise on changes in the UK long term savings market.

Mr Savage said Standard Life has made good progress in the UK following the reform of pensions law in April, under which people aged 55 and over were allowed to tap into their retirement pots early.

The reforms triggered huge interest initially, amid widespread reports of people raiding their pension savings to buy fast cars and the like.

However, noting only six per cent of Standard Life’s customers who could access their savings had done so, Mr Savage said the changes had resulted in increased business for the company.

Enquiry levels have tailed off.

While people with small pension pots have tended to cash them in, most of those with more substantial savings have left the bulk invested.

Standard Life has seen a big increase in demand for its draw down products, which allow customers to take out some of their savings.

“We are seeing good strong flows from people moving their money from some of our peers that aren’t able to offer effective draw down solutions,” said Mr Savage.

The company recorded £1.8bn net flows into draw down assets in the first nine months, up 33 per cent from £1.4bn in the same period of 2014.

Standard Life said it has added 190,000 new customers in the year to date under the auto-enrolment scheme introduced in 2012, with 70,000 in the latest quarter. These contributed to a 12 per cent increase in regular contributions into workplace pensions.

Total assets under management increased by two per cent, £5.3bn, in the first nine months, to £301.9bn from £296.6bn at the end of last year.

Market and other movements reduced the value of funds under management by £0.5bn in the first nine months.

Standard Life Investments attracted £5.3bn net funds inflows from third parties in the first nine months, up from £3.9bn in the same period last year.

UK retail and workplace assets increased by £2.5bn, while those linked to annuities and with profits policies fell by £1.4bn.