Standard Life delivers solid performance in Canada in the third quarter

Note:   All figures are based on IFRS and are shown in Canadian dollars. All comparisons are with the corresponding period of 2010, unless otherwise stated. 2010 results have been restated, when required, to reflect the adoption of IFRS in 2011.

  • Premiums and deposits up to $1.2 billion
  • Solvency ratio at 227%
  • Assets under administration stable at $40 billion

MONTREAL, Nov. 2, 2011 /CNW Telbec/ - Canadian-based Standard Life Financial Inc. ("Standard Life") today announced a 2% increase in premiums and deposits to $1.2 billion in the third quarter of 2011. This is a result of strong sales and market share growth in retail segregated funds and its group insurance and disability management business.

"Standard Life is in a favourable position in Canada," said Joseph Iannicelli, President. "The shift to position ourselves as a savings and investment company, and our focus on capital efficient products has meant that declines in equity markets and interest rate levels have not materially impacted our results."

Premiums and deposits for retail products were up 4% to $377 million (2010: $361 million). The growth continued to be driven by a strong demand for segregated funds (+ 32%), including the Ideal Income Series of Ideal Segregated Funds - Signature Series that was launched recently. The increase was offset by a decrease in mutual funds (- 30%).

Premiums in group insurance and disability management services grew 4% to $173 million (2010: $166 million) and the large volume of new sales produced in the quarter will also bring in future recurring premium renewals.

Premiums and deposits in group savings and retirement remained at $630 million. Despite the depressed market for new business, premiums and deposits in the company's core business segment of defined contribution plans were up 7% to $499 million (2010: $466 million).

Strong capital position maintained
The Standard Life Assurance Company of Canada, Standard Life Financial's main operating subsidiary, reported a strong solvency ratio at 227% compared to 252% at June 30, 2011. The decrease is due to the payment of a dividend to Standard Life plc, counterbalanced by higher operating earnings in the quarter. Standard Life Financial has not required access to additional capital despite the challenging market conditions that have been prevailing since 2008.

Standard Life plc has a robust capital position, which, assisted by the de-risking of the business carried out over the last few years, has been largely insensitive to market movements even in the volatile financial market conditions seen in the last quarter. Direct shareholder exposure to debt issued by governments and banks in Greece, Ireland, Italy, Portugal and Spain is less than $80 million.

Outlook
Although Standard Life in Canada expects the equity and credit markets to remain uncertain, it anticipates continued success in the last part of 2011. The company will continue to focus on its core business segments of:

  • Group defined contribution retirement plans
  • Disability prevention and management services for employers
  • Retail investment funds

About Standard Life
Standard Life plc is a leading long-term savings and investment company headquartered in Edinburgh, Scotland. Standard Life has around 6 million customers worldwide and operates in the United Kingdom, Europe, North America and Asia Pacific, and globally with Standard Life Investments Ltd.

In Canada, Standard Life has been doing business for 178 years. Standard Life Financial Inc., which wholly owns The Standard Life Assurance Company of Canada and Standard Life Mutual Funds Ltd., is Standard Life plc's largest operation outside the UK. With about 2,000 employees, it provides long-term savings, investment and insurance solutions to more than 1.4 million Canadians, including group benefit and retirement plan members.

As of September 30, 2011, Standard Life plc had $310 billion in assets under administration, including $40 billion in Canada through Standard Life Financial.

Forward-looking statements
This press release may contain forward-looking statements about certain of Standard Life's current plans, goals and expectations relating to future financial conditions, performance, results, strategy and objectives. Statements containing the words: 'believes', 'intends', 'expects', 'plans', 'seeks' and 'anticipates' and any other words of similar meaning are forward-looking. All forward-looking statements involve risk and uncertainty because they relate to future events and circumstances beyond Standard Life's control. As a result, Standard Life's actual financial condition, performance and results may differ materially from the plans, goals and expectations set out in the forward-looking statements. The company will not undertake any obligation to update any of the forward-looking statements in this press release or any other forward-looking statements that it may make. 

Notes to editors:

  1. Premiums and deposits is a non-GAAP measure. Standard Life includes in its calculation deposits from segregated and mutual funds, and premium equivalents of administrative services only (ASO).
  2. The adoption of the International Financial Reporting Standards (IFRS) in 2011 did not change the way Standard Life calculates premiums and deposits.
  3. As per UK securities regulations, Standard Life plc issues trading results and interim management statements for the 3 months ending March 31, and the 9 months ending September 30. It reports full results for the 6 months ending June 30, and the 12 months ending December 31. Standard Life Financial Inc. follows the same schedule.
  4. The Standard Life plc (LSE: SL.L) 2011 Q3 Interim Management Statement published earlier today is posted online.
  5. Last June, Standard & Poor's raised the financial strength ratings of Standard Life's main operating company in Canada to 'A+' based on the company's improved contribution of earnings and its core status to Standard Life plc.

SOURCE STANDARD LIFE

For further information:

Valérie Lamarre
Standard Life - Canada
Tel.: 514-499-7999, ext. 8150 / 1-877-499-9555, ext. 8150
valerie.lamarre@standardlife.ca

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