Standard Life is setting its sights on India to grow its business.

The company is involved with plans to create the leading private life insurance business in India, having increased its stake in Indian insurance firm HDFC Life, which it aims to combine with New Delhi-based insurer Max Life.

In its annual report this morning, it noted that its profits relating to India and China rose to £36m, up from £27m. It also revealed that it paid £31m to buy Elevate.

The report referenced the firm’s “strategic associate and joint venture life businesses in India and China that are sources of future potential growth and diversification”.

Total net outflows of £2.6bn (compared to net inflows £6.3bn in 2015) “reflected ongoing progress in our India and China associate and joint venture life businesses” which generated net inflows of £0.4bn (2015: £0.2bn).

Keith Skeoch, chief executive, said that the “increase in the stake in HDFC Life and the proposed combination with Max Life will increase our exposure to the attractive and fast growing Indian market”.

Meanwhile, the firm detailed how it has set aside £175m to cover the cost of redress as part of its review of non-advised annuity sales.

There has been an ongoing review of all non-advised annuity sales from 2008 into whether customers were properly informed about the option of taking out an enhanced annuity.

The FCA said last year enforcement steps were being carried out at a small number of firms following a review of 1,200 non-advised sales at seven firms.

Today’s results also showed:

• Operating profit before tax up 9% to £723m

• Fee based revenue up 5% to £1,651m

• Financial Planning arm 1825 has 65 financial planners, advising 8,600 clients on assets of £3.2bn after three takeovers last year

Mr Skeoch said: “Standard Life continues to make good progress towards creating a world-class investment company. We have increased the pace of strategic delivery, against a backdrop of volatile investment markets, with growth in assets, profits, cash flows and returns to shareholders.

“Despite industry headwinds, we are benefiting from our strengthening global brand and strong long-term relationships with a well diversified range of clients and customers. The acquisition of Elevate has strengthened our leading position in the advised platform market.”