LIFE and pensions group Standard Life said volatile markets and worries over the eurozone crisis had taken a toll on sales.

Assets under management fell by nearly £9bn from June to £191.1bn in the three months to September, while its UK retail customers pulled £519m out of the group, almost double the total for the quarter a year ago.

UK investors bought more self-invested pensions, or SIPPs and sales of funds rose slightly – but these were offset by a rise in legacy life insurance products hitting maturity.

Chief executive David Nish said that overall the third quarter saw very challenging conditions that affected consumer confidence and reduced the pace of new funds coming into the business.

The economic uncertainty and volatile conditions in financial markets would continue to make operating conditions “challenging”, he added.

The firm, based in Edinburgh, said it had 26% more SIPP customers than a year ago – taking the total number to 127,700.

Annuity sales rose by 16% in the quarter to £123m, though Standard said new business slowed in September as customers chose to defer retirement rather than crystallise market losses in the current environment. On a net basis, annuity income fell by £164m.

Corporate and institutional pensions business picked up, though analysts said net gains of £651m were below market expectations after a £2.08bn rise in the first six months.