Standard Life reports continued growth in Canada in the first 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.

 

MONTREAL, April 28 /CNW Telbec/ - Standard Life Financial Inc. ("Standard Life") today reported that premiums and deposits grew 19% to $1.5 billion (2010: $1.3 billion) as a result of the good performance of its group business and favourable market conditions in the first quarter of 2011.

Assets under administration were 8% higher at $41 billion at the end of the first quarter, compared to the same period a year ago (2010: $38 billion).

"We're showing real momentum," said Joseph Iannicelli, President. "Our group business had a strong start to the year, despite the slower activity across the industry. We had a busy first quarter with a steady stream of new business, the launch of our revamped workplace retirement statement and the development of enhancements to our retail investment offering."

Group savings and retirement premiums and deposits grew 36% to $894 million (2010: $657 million), including a 24% increase in the company's core defined contribution group retirement segment. Group benefit premiums were up 8% to $172 million (2010: $160 million).

Premiums and deposits from individual investment and insurance products were slightly higher at $480 million (2010: $479 million). Segregated funds continued their strong showing, premiums and deposits improving by 15% to $226 million (2010: $197 million). The increase was partly offset by the lower demand for term funds and mutual funds.

Strong capital strength and operating performance
The Standard Life Assurance Company of Canada, Standard Life Financial's main operating subsidiary, reported a solvency ratio of 237% compared to 226% as of January 1, 2011. The increase is primarily the result of higher operating earnings in the quarter. The adoption of the International Financial Reporting Standards (IFRS) as of January 1, 2011 led to higher capital charges following changes in the accounting value of assets but the underlying financial strength of the company was not affected.

Outlook
Positive macro trends such as those seen in North America in the first three months of 2011, typically provide a strong footing for the life insurance sector. Standard Life is confident of continued success in 2011 in Canada in its three core business segments.

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.

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 March 31, 2011, Standard Life plc had $309 billion in assets under administration, including $41 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. The Standard Life Assurance Company of Canada reported a solvency ratio of 240% as of December 31, 2010 based on Canadian GAAP. The figure was restated to 226% as of January 1, 2011 following the adoption of IFRS, which led to higher capital charges following changes in the accounting value of assets.
  4. 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.
  5. The Standard Life plc (LSE: SL.L) 2011 Q1 Interim Management Statement published earlier today is posted at http://www.standardlife.com/investor/press_releases.html.

SOURCE STANDARD LIFE

For further information:

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

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