Insurer and asset manager Standard Life posted an above-forecast 6 per cent rise in first-half operating profit on Tuesday, as it nears completion of an 11 billion pound ($14.35 billion) merger with Aberdeen Asset Management.

The merger to form the largest active manager in Britain will give the combined group assets of around 670 billion pounds and aims to save at least 200 million pounds in annual costs.

The firms are looking to shore up their defences in the face of competition from lower-cost index funds and the increased cost of tougher regulations -- pressures that are expected to prompt more industry consolidation.

Standard Life and Aberdeen Chief Executives Keith Skeoch and Martin Gilbert will be co-chief executives of the combined group, a structure which has been met with some scepticism.

“The combined leadership team of Standard Life and Aberdeen has been working well together to ensure 'Day 1' readiness," Standard Life chief executive Keith Skeoch said in a trading statement.

“We are ready to accelerate the pace of strategic delivery as we open the next chapter of our transformation to a diversified world-class investment company.”

The tie-up between the two Scottish firms will complete on August 14, after being signed off by shareholders in June.

Operating profit before tax was 362 million pounds, above a company-supplied consensus forecast of 353 million, helped by a 1 per cent rise in assets under administration to 362 billion pounds, in line with forecasts.

Standard Life's flagship GARS (Global Absolute Return Strategies) multi-asset strategy, however, saw 5.6 billion pounds in net outflows over the period, also in line with forecasts.

Standard Life said it would pay an interim dividend of 7 pence per share, up 8.2 per cent and against a forecast 6.99 pence. ($1 = 0.7668 pounds)

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