Standard Life operating profit jumps, annuity sales hit

* Operating profit jumps 19 pct

* Pension reforms hit annuity sales

* Plans to increase stake in India joint venture (Adds detail, share price, India joint venture)

LONDON, Feb 20 (Reuters) - A move into asset management helped to drive a 19 percent rise in operating profit for Standard Life (LSE: SL.L - news) in 2014, offsetting a hit to annuity sales from British pension reforms.

Best known as an insurer, Standard Life is moving more into asset management and away from its traditional business. It sold its Canadian operations last year for $3.7 billion and also bought Ignis Asset Management for 390 million pounds ($602 million).

Chief Executive David Nish told reporters on a conference call that the deals "transformed the group further towards being a long-term investment savings business".

Operating profit before tax from continuing operations rose to 604 million pounds ($931.5 million), Standard Life said in a statement, ahead of a forecast of 559 million pounds.

It said it would pay a total dividend of 17.03 pence per share, again beating forecasts of 16.89 pence per share.

Standard Life's shares rallied 3.4 percent to their highest since Dec 8 at 423 pence.

It was not all good news, however. Margins from annuity new business sales fell 66 percent last year and Standard Life expected contribution from annuity new business to drop in 2015 by between 10 and 15 million pounds.

"In terms of our annuity sales, there has been a significant reduction, a direct result of the changes announced in the budget," Nish said, adding that the strength of the company's results reflected the breadth of its business.

Pensions and insurance companies were forced back to the drawing board last year by surprise British reforms, to take effect in April, which mean retirees no longer need to use their pensions pots to buy an annuity, which gives an income for life.

The firm's joint ventures in China and India were performing well, Nish said, adding the firm wanted to increase its stake in its Indian life joint venture with HDFC, pending rule changes.

The changes will allow foreign investors to take a maximum 49 percent stake in insurance joint ventures, from the current 26 percent. However, Nish said it was "probably unlikely" the firm would increase its stake to the maximum 49 percent. ($1 = 0.6484 pounds) (Reporting by Carolyn Cohn; editing by Matt Scuffham and Keith Weir)