Standard Life Assurance Co. of Canada reported today that its net income rose 10% in 2007.

The insurer said net income for the year ended Dec. 31, 2007 was $204 million compared with $185 million for the same period in 2006.

The increase in profit came despite lower sales, Standard life said. It attributed the gain to “a continuing sharpened focus on operational efficiency and a decision to favour value over volume.”

“New business profitability, which is a key indicator of the success of our new strategy, rose 38% to $80 million in 2007,” said Joseph Iannicelli, president and CEO of Standard Life in Canada, in a release.

“By rebuilding our retail sales force and expanding our distribution strategies over the past two years, we have forged the momentum we need for a strong start to 2008 and well beyond,” continued Iannicelli. “We intend to significantly increase our visibility in the Canadian market, focusing our efforts on high quality customer service and enhanced product offerings.”

Montreal-based he Standard Life Canada is Standard Life plc’s largest operation outside the UK.