* FTSE 100 index rises 0.1 pct, trades near 14-year high
* Standard Life surges on deal to sell Canadian assets
* Focus on European Central Bank's policy meeting
By Atul Prakash
LONDON, Sept 4 Britain's top share index edged
higher on Thursday to trade near a 14-year high, with Standard
Life leading insurers higher and adding the most points
to the index after agreeing to sell its Canadian operations.
The UK life insurance index climbed 1.2
percent, the top sectoral gainer, boosted by a 9.5 percent surge
in shares of Standard Life following its deal worth about C$4
billion ($3.7 billion) in cash with Manulife Financial Corp
The companies said they will also expand an existing wealth
and asset management partnership, with Manulife distributing
Standard Life funds in Canada, the United States and Asia, and
Standard Life doing the same in the UK retail market.
"The disposal accelerates Standard Life's strategy of asset
gathering and asset management and removes a major exposure of
the group's balance sheet to spread and guarantee risk," Eamonn
Flanagan, analyst at Shore Capital, said.
"The agreement for Manulife to act as distributor for SL's
funds should deliver growth in funds, thus accelerating Standard
Life's focus as an asset gatherer and manager."
Insurers helped the blue-chip FTSE 100 index to gain
0.1 percent to 6,882.30 points by 0754 GMT. The index climbed to
its highest level in more than 14 years in the previous session
as signs that Ukraine and Russia were working to end the
conflict in eastern Ukraine lifted sentiment.
However, investors stayed cautious ahead of the European
Central Bank's policy meeting later in the day. The ECB faces
intense market pressure to take policy action and risks losing
credibility if it fails to back up a dovish message delivered by
President Mario Draghi late last month.
Draghi ramped up expectations when, departing from his
speech text, he told the Jackson Hole central bankers'
conference on Aug. 22 that markets had indicated inflation
expectations showed "significant declines" in August.
"The market is expecting all hurdles to be negotiated safely
and central banks to remain supportive," Jeremy Batstone-Carr,
head of private client research at Charles Stanley, said.
"If Draghi opts for 'jam tomorrow' in the press conference
then any weakness is likely to be short-lived."
The Bank of England also holds its policy meeting later in
the session, but is expected to keep interest rates unchanged.
(Reporting by Atul Prakash; Editing by Toby Chopra)