Standard Life shares leap as bullish Nish defies his critics

Nish said that not investing would have been a "waste" and that the plans were based on his "strong views" of how the market would look ahead of regulatory changes affecting pension sales in 2012. "If I was sitting here in 12 months' time looking back and we hadn't invested and all I had done was maintain the capital, squeeze the costs and run the business off a bit, what a waste of an opportunity and also the quality that is in Standard Life," he said.

The firm has also come under heat from shareholders for being frugal with its dividend increases, although many welcomed the 5.7 per cent interim dividend increase to 4.6p.

Gordon Aitken at Royal Bank of Canada also applauded the firm's shift from offering dividends in scrip to a dividend re-investment plan (drip).

Although shareholders often prefer scrips, which don't come with dealing costs or stamp duty liability, Aitken said the drip scheme was less dilutive and "shows the company is confident in the level of cash that can be generated by the business".

Nish said: "Our balance sheet is stronger - cash-flows are stronger, profits stronger, our market shares are stronger.

"We have grown dividends and we are the only company in the sector with a track record of growing dividends, and we have invested, which means we have a capability to grow in future. We are a long-terms business and we have to invest for the long term."

The Edinburgh-based insurer posted operating profits of 262m in the six months to 30 June, up 44 per cent on a year earlier, after 30m in cost cuts and a 16 per cent rise in new business sales to 11.2 billion.

The firm also broke through the 200bn mark in group assets under management (AUM), up 12 per cent on the same period last year. Standard Life Investment's (SLI) external AUMs were up 15 per cent to 71.6bn.

Nish said the milestone was "a nice round number"and joked: "I just look at Mr (Keith] Skeoch (chief executive of SLI] and ask where is the 300 (billion]?"

UK customer numbers in its popular DIY-style self-invested personal pension (sipp) products rose 26 per cent in the first half to 120,800, while it secured 86 corporate pension schemes and added 41,000 employees to a Standard Life pension scheme in total.

Analysts at Panmure Gordon hailed the firm's "strong" first-half figures but warned that earnings at the group will need to beat consensus expectations in 2013 if management remuneration schemes are to pay out.

At the firm's AGM in May, 11.5 per cent of shareholders voted against the remuneration report, which included a 2m pay package for Nish. The chief executive said he would "have to work harder" to beat the analysts forecasts.

"Obviously, the board are keen to set stretching targets and try to get the company to a different place.

"We are confident of what we are building in the business and we are confident about the scale of the opportunity.

"Then it all comes down to playing well in the second half of the game.

"I believe I have a strong team and they are very focused on achieving our goals."