(Corrects time period of net inflows to nine months)
By Carolyn Cohn
LONDON, Oct 29 (Reuters) - Insurer Standard Life reported strong net inflows in the first nine months but saidthat changes in British pension rules cut sales of key productsand made the outlook uncertain.
The government's Budget changes in March mean that Britishsavers will be given more access to their pension pots, with noobligation to buy an annuity, with further changes this monthmaking it easier for over-55s to withdraw money from theirpension schemes.
Paul Matthews, chief executive of Standard Life's Britishoperation, told reporters that a 50-60 percent drop in annuities- which provide savers with an income in retirement - isexpected but the full impact will remain unclear until all thechanges come into force next year.
Life insurance companies have been focusing on the sale ofother products, such as drawdown schemes, which enable holdersto withdraw money from their pensions.
"We do not know how many are going to go into (pension)drawdown," Matthews said.
Shore Capital analyst Eamonn Flanagan described thestatement as cautiously upbeat, reiterating his "hold"recommendation on the stock, while Gordon Aitken of RBC Capitalsaid he expected Standard Life to be less hurt by falling salesof invididual and bulk annuities than rivals Legal & General and Friends Life.
Standard Life's net inflows were 4.3 billion pounds ($6.94billion) in the first nine months, with assets underadministration from continuing operations rising to 290 billionpounds from 237.6 billion pounds a year ago, the company said inWednesday's trading update.
The figures were helped by the sale of Ignis AssetManagement, it said, while it classed its Canadian operations,which it sold during the third quarter, as discontinuedoperations.
Quarterly sales of UK annuities plunged 67 percent year onyear, with sales this year down 55 percent, sending thecompany's shares down nearly 2 percent to 379 pence in earlytrading.($1 = 0.6193 British Pounds) (Editing by David Goodman)