Jeff Salway: City awaits news from two big-hitters of insurance world

ALL eyes will be on the UK's insurance giants this week as Standard Life and Prudential prepare to unveil their half-year results.

David Nish, chief executive of Standard Life, is expected to play down suggestions that the Edinburgh-based group could embark on a spending spree over the coming months.

Instead Nish will use the company's half-year results announcement on Wednesday to reassure investors that the group remains focused on organic growth, with potential only for so-called "bolt-on" acquisitions.

The insurer is set to report a fall in earnings compared with robust results following a robust first six months in 2009, according to analysts at Panmure Gordon, who are predicting a 16 per cent drop in operating profits to 293 million.

However, they also forecast a 26 per cent rise in worldwide life and pensions to 9.4 billion, with pension providers benefiting from a shift towards long-term savings as consumers batten down the hatches amid continued economic uncertainty.

Standard Life's interim announcement may be eclipsed by that of Prudential on Thursday, when better-than-expected-profits are likely take the some of the heat off chief executive Tidjane Thiam following the firm's abortive 24bn bid for AIG's Asian arm earlier this year.

Fellow insurance giant Aviva showed its hand last week, revealing that profits trebled in the first six months of the year to 2.1bn before tax, a year-on-year bounce of 21 per cent.

Tour operators Thomas Cook and Thomson owner TUI Travel will both give updates this week on a turbulent trading period dominated by the fallout from the volcanic ash cloud crisis. Thomas Cook said in May that it had taken a 70m hit from the travel chaos unleashed by the eruption in April, while TUI reported an even bigger 90m blow. With many holidaymakers choosing to stay in the UK this summer both firms have been forced to offer knock-down prices in the late-booking market.

TUI will report on the most recent trends tomorrow. Chief executive Peter Long said bookings improved in May after a slump in April, while Thomas Cook, which will provide an update on Wednesday, said it was pleased with summer bookings so far, with a 5 per cent rise in the last four weeks.

There may be better news from Newcastle-based bakery chain Greggs when it reveals its interim results tomorrow, after a 0.6 per cent sales hike in the 18 weeks to May, compared with the same period last year. However, the group, which has 1,400 outlets across the UK, faces headwinds resulting from the recent surge in wheat prices, concerns over which could dominate the results.

Consensus forecasts currently point to pre-tax profits of 51.4m for the full year to January, up from 48.8m last time. But this could be squeezed if the group anticipates a significant rise in costs as a result of the rise in prices.

The baker, which began life in the 1930s and floated in 1984, is planning to open up to 60 new shops in addition to undertaking some 120 refits.