Standard Life reports 2013 third quarter results in Canada

Note: All figures are based on IFRS and are shown in Canadian dollars. All comparisons are with the corresponding period of 2012, unless otherwise stated.

  • Total assets under administration up 4% to $46.1 billion
  • Fee-based assets under administration increased 14% to $28.2 billion
  • Segregated funds sales up 66% to $321.7 million

MONTREAL, Oct. 30, 2013 /CNW Telbec/ - Standard Life Financial Inc. ("Standard Life") today reported that premiums and deposits were stable at $4.3 billion for the first nine months of 2013 and reached $1.4 billion in the third quarter (2012: $1.6 billion). These results reflect a strong performance in the company's retail investment funds.

Charles Guay, President, said: "We're seeing strong momentum in our retail business. We continue to gain ground with the fastest growing segregated funds offering in Canada, to add innovative funds to our offering, and to leverage the global expertise and capabilities of our asset manager, Standard Life Investments."

Mr. Guay added: "I'm pleased with the work we've accomplished, especially with continuing to address the needs of our customers. We just launched our Financial Inertia Program. This is a major commitment to encouraging Canadians to become more proactive in managing their savings and investments. We also completely revamped our Education Centre to help employees who have a group savings and retirement plan with Standard Life to gain more confidence and be more engaged in planning their financial future."

Increase in fee-based assets under administration
Total assets under administration were up 4% over last year to $46.1 billion (2012: $44.3 billion), mainly due to net inflows and positive market movement. Fee-based assets under administration increased by 14% over last year to $28.2 billion (2012: $24.8 billion).

Momentum in retail business
Overall premiums and deposits for retail savings and investment solutions increased by 12% to $1.4 billion for the first nine months of 2013 (2012: $1.2 billion), and by 32% to $471 million in the third quarter (2012: $357.5 million). The growth was driven by the continued success of Standard Life's retail segregated funds, which grew 22% to $922.7 million year-to-date (2012: $755.5 million), and 66% over the same quarter last year, to $321.7 million (2012: $194.1 million).

Continued growth in defined contributions retirement plans
Overall premiums and deposits from the group savings and retirement business amounted to $2.3 billion for the first nine months of 2013 (2012: $2.4 billion), and to $725 million in the third quarter (2012: $984 million), impacted by the uneven pattern of this business. Premiums and deposits in the core segment of defined contribution plans improved by 4.5% to $1.9 billion year-to-date (2012: $1.8 billion), and were up slightly to $566 million in the third quarter (2012: $565 million.)

Group insurance and disability management activities were in line with the first nine months of last year at $532 million (2012: $533 million), and experienced a 3% decrease to $174 million in the third quarter (2012: $180 million).

Solid capital position maintained
Standard Life Financial's main operating subsidiary, The Standard Life Assurance Company of Canada, reported a solvency ratio of 245% at the end of September (June 2013: 263%) following a dividend payment of $205 million to Standard Life plc.

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. Total premiums and deposits reported in Q3 of 2013 include those generated by individual life insurance products sold prior to 2012. The Standard Life Assurance of Canada stopped selling individual life insurance and critical illness products in 2012, but continues to service the in-force block of business.
  2. Premiums and deposits is a non-IFRS measure. Standard Life includes in its calculation deposits from segregated and mutual funds, and premium equivalents of administrative services only (ASO).
  3. As per UK securities regulations, Standard Life plc issues trading results and interim management statements for the three months ending March 31, and the nine months ending September 30. It reports full results for the six months ending June 30, and the twelve months ending December 31. Standard Life Financial Inc. follows the same schedule.
  4. In May 2013, Standard & Poor's reaffirmed the financial strength ratings of Standard Life's main operating company in Canada at 'A+.
  5. Standard Life plc (LSE: SL.L) 2013 Q3 results published earlier today are available online.

About Standard Life
Standard Life provides long-term savings, investment and insurance solutions to more than 1.4 million Canadians, including group retirement and insurance plan members. Standard Life in Canada has been doing business for 180 years and has approximately 2,000 employees. It operates under Standard Life Financial Inc., which wholly owns The Standard Life Assurance Company of Canada and Standard Life Mutual Funds Ltd.

Standard Life Financial is the largest operation outside the United Kingdom of Standard Life plc, its parent company headquartered in Edinburgh, Scotland. Standard Life plc has around six million customers worldwide and operates in the UK, Canada, Europe, Asia, the Middle East and globally with Standard Life Investments Ltd.

Standard Life plc had $396 billion in assets under administration, including $46.1 billion in Canada through Standard Life Financial Inc. (at September 30, 2013).

SOURCE: Standard Life

For further information:

Ann-Marie Gagné
514-499-7999 or 1-877-499-9555, ext. 4600
ann-marie.gagne@standardlife.ca

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