Note: All figures are based on IFRS and are shown in Canadian dollars.
Readers are referred to the end of this release for non-IFRS measures.
All comparisons are with the corresponding period of 2012, unless
Underlying operating profit before tax up 71% to $295 million
Net income of $236 million, compared to $428 million in 2012, reflecting
lower benefits of one-off items
Fee-based revenues increased by 15% to $314 million
Premiums and deposits up 6% to $6.2 billion
Total assets under administration up 7% to $48 billion
Fee-based assets under administration up 18%
Strong solvency ratio of 261%
MONTREAL, Feb. 27, 2014 /CNW Telbec/ - Standard Life Financial Inc.
("Standard Life") reported net income of $236 million in 2013 (2012:
$428 million), with underlying operating profit before tax, which
excludes economic movements and the benefits of one-off items,
increasing to $295 million (2012: $173 million), reflecting growing
momentum in fee-based business. Premiums and deposits grew to $6.2
billion (2012: $5.9 billion), including a 21% increase to $1.9 billion
in the fourth quarter (2012: $1.5 billion).
Charles Guay, President of Standard Life said: "Standard Life has
remained focused on improving the underlying operating performance of
its business in Canada. We have increased premiums and deposits with
the notable success of our retail segregated funds offering."
"We keep on delivering new and innovative solutions for our customers.
During the year we introduced our Group Retirement Centre and our
Financial Education Centre, designed to assist pension plan members in
addressing their financial and investment needs.
"We also continue to leverage Standard Life Investments' leading global
investment capabilities. Last year we added several new funds to our
offering, increasing our presence with advisors and investors.
"We look forward to further growing our fee-based business by
consistently delivering value to our customers."
Overall sales from individual wealth increased by 19% to $2.0 billion in 2013 (2012: $1.7 billion). The
growth was driven by strong sales momentum in retail segregated funds,
which grew 26.8% to $1.3 billion in 2013 (2012: $1.1 billion).
Overall premiums and deposits from the group savings and retirement business increased by 1.2% to $3.29 billion (2012: $3.26 billion). Core
defined contribution business increased by 4% to $2.49 billion (2012:
Group insurance and disability management activities were in line with prior year at $706 million (2012: $719
Total assets under administration increased by 7.2% during the year to
$48 billion (2012: $45 billion), driven by an 18% growth in fee-based
assets under administration.
Standard Life's primary operating subsidiary, The Standard Life
Assurance Company of Canada, reported a strong solvency ratio of 261% as at December 31, 2013 (2012: 277%).
In 2014, the company expects to continue to grow its fee-based business
by continuing to focus on the needs of customers in its three core
Group defined contribution retirement plans
Health and wellness, including disability prevention and management
services for employers
Retail investment funds
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
Underlying operating profit before tax is a non-IFRS measure. This
measure is used to better understand the long-term earnings capacity of
the business. Underlying operating profit excludes the impact of
macro-economic factors as well as a number of other items that are
considered material and exceptional in nature.
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).
Total premiums and deposits reported for 2013 and 2012 include those
generated by individual life insurance products sold prior to 2012. The
Standard Life Assurance Company of Canada stopped selling individual
life insurance and critical illness products in 2012, but continues to
service the in-force block of business.
Fee-based business includes segregated funds revenues from group savings
and retirement and individual wealth and mutual funds revenues.
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.
In May 2013, Standard & Poor's reaffirmed the financial strength ratings
of Standard Life's main operating company in Canada at 'A+.
Standard Life plc (LSE: SL.L) 2013 preliminary 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. It has 2,000 employees and its
primary operating subsidiaries are The Standard Life Assurance Company
of Canada and Standard Life Mutual Funds Ltd.
The Canadian operation of Standard Life plc, its ultimate parent
company, is the largest outside the United Kingdom. Headquartered in
Scotland, Standard Life plc has around six million customers worldwide
and operates in the UK, Canada, Europe, Asia and the Middle East.
Standard Life plc had $429.7 billion in assets under administration,
including $48 billion in Canada at December 31, 2013.
SOURCE: Standard Life
For further information:
514-499-7999 or 1-877-499-9555 ext. 8150