Standard Life's early move into Sipps (self-invested personal pensions) was yesterday again shown to have wrongfooted its UK rivals as its first quarter sales beat market expectations.

Sipp sales more than doubled to £1.2bn as UK sales soared by 52% to £3.2bn, also boosted by a 40% uplift in group pension sales to £582m. Worldwide life and pensions new business rose 40% to £3.9bn from last year's £2.8bn.

Finance director David Nish said the year had "started strongly and the momentum we demonstrated last year has continued".

Bruno Paulson, analyst at Sanford Bernstein, said: "The decision to bet the farm on SIPPs is proving to be fully vindicated."

He said there were still concerns about the potential impact of rising competition in this market, especially as the "A-Day effect" of last year's pension reforms fades.

However, Trevor Matthews, head of the UK business, said Standard's Sipp was more sophisticated than rival products and competition was failing to dent the group's progress.

He added: "The potential for the Sipp market is very strong if you step back and think about the number of eligible customers. People are realising it makes sense to consolidate their pension pots".

The group emphasised that Sipp sales in the last month, after the end of the 2006-07 tax year, were still strong. Other UK insurers have all entered the Sipp market well behind Standard, and although pensions growth has been strong across the board they have all suffered a competitive squeeze in their own key markets, notably protection and annuities.

Eamonn Flanagan, analyst at Shore Capital, said the results were well ahead of expectations and noted that sales momentum had continued into the second quarter. He added that there had been no reference in the statement to lapses - the expectations for lapsing policies against which Standard made a £100m provision last year and said it would update the market this year.

Last week a report from JP Morgan Cazenove said that Matthews in a company visit had appeared "relaxed" about current assumptions.

Standard Life increased new business in Ireland by 96% to £128m on the back of new products (including the Sipp) and strong pension sales.

In Canada, where restructuring to focus on high margin, low capital products along UK lines is only now under way, sales fell 15% to £359m, also affected by a £61m bulk annuity bonus a year ago.

Nish said Standard Life remained committed to Canada, the world's fourth-largest pension market. "We are very comfortable with the quality of our Canadian business, but during a turnaround period you would expect to see things going down as we realign the sales offer."

Standard Life Investments delivered first-quarter worldwide net investment sales of £2.26bn, up marginally on a year ago. During the quarter, total funds under management increased by £4.9bn to £137bn.

Matt Lilley of Lehman said in a note that the most pleasing surprise was the healthy uplift in group pension sales. "With a strong performance from other UK products, Ireland and asset management more than offsetting the disappointing Canadian business, the market should, in our view, respond positively to these numbers." Lilley said.

The shares eased 2.75p to 332p.

Richard Hunter, at broker Hargreaves Lansdown, commented: "On balance, consolidation within the wider sector provides some support and the shares do trade on a discount to most of its peers.

"Nonetheless, there are better opportunities to be found elsewhere, particularly among the more diversified majors, and the price has seen a healthy 45% hike since the initial float last July. As such, the current market view is that the shares are a weak hold."