Note: All figures are based on Canadian GAAP measures and shown in Canadian dollars. Unless otherwise stated, all comparisons are with the corresponding period of 2009.
MONTREAL, Aug. 11 /CNW Telbec/ - Standard Life Financial Inc. today reported that, in the quarter ended June 30, 2010, premiums and deposits grew 13% to $1.2 billion, underpinned by successful sales in its core markets. Net income amounted to $23.8 million, increasing year-to-date profit to $77.9 million (2009: $64.9 million).
Standard Life Financial is the Canadian subsidiary of the UK-based long-term savings and investment group Standard Life plc. Earlier today Standard Life plc published detailed results for the 6 months ended June 30, 2010, and announced a 4.8% increase on the prior year of its interim dividend to $0.07.
"I am pleased with the way Standard Life has adapted to the changing market conditions and delivered growth in Canada for a third consecutive quarter," said Joseph Iannicelli, President. "We are particularly encouraged by our gains in market share and the momentum we're building in our core segments of retail investment funds, defined contribution retirement plans and disability management. I am confident that we will continue to grow in a profitable manner."
The increase in premiums and deposits for Standard Life's retail solutions in Q2 of 2010 was mainly driven by a higher demand for its segregated funds offering. Segregated and mutual fund sales grew by 62% to $27.9 million (2009: $17.2 million), significantly outpacing the market.
Overall, group premiums and deposits were 16% higher at $858.3 million (2009: $737.1 million), despite slower market activity.
Robust capital strength
The Standard Life Assurance Company of Canada maintained its capital and financial strength, reporting a solvency ratio of 217% (December 31, 2009: 213%; June 30, 2009: 206%), without any need to access additional capital. The Company continues to maintain a good credit profile, experiencing no losses in its corporate bond and mortgage loan portfolios, despite persistent difficult credit conditions in the wider market.
Standard Life Financial maintains its positive outlook for the rest of 2010, although the external environment is likely to remain uncertain. More specifically, the company expects continued success in its core segments in Canada. However, it does remain cautious about the short-term prospects in the group savings and retirement market and the impact of equity market volatility on retail investors' confidence.
As part of a group-wide transformation program to be better aligned with customer needs and the changing environment, Standard Life will adopt a new organizational structure in the fall. In Canada, this means moving from a structure that is currently divided by line of business to one divided by functional expertise.
Mr. Iannicelli concluded: "Our business is doing well and we're delivering against our targets. Our goal is to create a fitter, more flexible business that can identify and capture new opportunities, putting customers at the heart of everything we do."
About Standard Life
Established in 1825, Standard Life is a leading provider of long-term savings and investment solutions to over 6 million customers worldwide. Headquartered in Edinburgh, Scotland, Standard Life has around 10,000 employees across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. It had $284.6 billion in assets under administration, as of June 30, 2010.
In 2006, after 80 years as a mutual company, Standard Life Assurance Company demutualized and Standard Life plc was listed on the London Stock Exchange. Standard Life now has approximately 1.5 million shareholders in over 50 countries, including 13,000 in Canada.
In Canada, Standard Life has been doing business for over 175 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 over 2,000 employees based in Montréal and in offices across Canada, it provides long-term savings, investment and insurance solutions to more than 1.3 million Canadians, including group insurance and retirement plan members. It had $36.3 billion of assets under administration, as at June 30, 2010.
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.
Note to editors:
Standard Life plc (LSE: SL.L) 2010 half-year results are available from the Latest News section at www.standardlife.ca
SOURCE Standard Life
For further information: For further information: Ann-Marie Gagné, Manager, External Communications and Public Affairs, Standard Life, 1-877-499-9555 (ext. 4600) or 514-499-7999 (ext. 4600), firstname.lastname@example.org