SELL-off uncertainty dogging one of Southampton's biggest employers has been brought to an end with six words from the highest level.

More than 1,500 workers at the hugely profitable UK financial services group Skandia Life have felt vulnerable to market predators.

Speculation over whether Swedish parent company Skandia would be bought up by competitors and the UK arm hived off increased the uncertainty of staff in Hampshire.

Their concerns were based on the parent company's track record.

The Swedes sold off the flagship business in the USA and revealed plans last month to wave goodbye to the Japanese unit.

But now Skandia's new chief executive, Hans-Erik Andersson, has dispelled local fears.

He said: "The UK is not for sale."

Mr Andersson stressed that he wants to develop the remaining overseas operations, which account for 80 per cent of sales and assets under management, and he is after a "financially strong" owner for the parent company.

He added: "We should definitely be in the UK."

The UK side of Skandia Life, which has its headquarters in Southampton and sponsors the world-famous Cowes Week sailing regatta, is currently doing brilliantly.

Business South has just learnt that it is on track next month to record the second best-ever financial results in its 25-year history. The year 2000 was the peak.

Jo Gilby, Skandia Life's spokeswoman in Southampton, said Mr Andersson's statement was "encouraging".

She added: "We are very pleased with his comments - and our business is stronger than ever."

Alan Wilson, the millionaire boss of the UK arm, has tried to reassure staff over any potential takeover, but admitted that any disposal would be a matter for the board. Now Mr Andersson's commitment to the UK goes one step further. However, there is a cloud on the horizon for the parent company.

There could be showdown by angry investors in the wake of a corporate scandal, involving huge bonus payments and management perks, which rocked Skandia Life in Sweden late last year.