Note: All figures are based on IFRS and shown in Canadian dollars. All
comparisons are with the corresponding period in 2012, unless otherwise
First half 2013
Net income of $48 million
Premiums and deposits of $2.9 billion
Assets under administration at $45.4 billion
Solvency ratio at 263%
MONTREAL, Aug. 8, 2013 /CNW Telbec/ - Standard Life Financial Inc.
("Standard Life") today reported net income of $48 million for the
first six months of 2013 (2012: $78 million). These results reflect
interest rate volatility and equity market returns.
Growth was maintained during the first half, as premiums and deposits
rose 5.6% to $2.9 billion (2012: $2.8 billion). Expansion was driven by
our retail business where demand for segregated funds increased by 8.5%
to $609.5 million (2012: $561.9 million), and our group savings and
retirement solutions where premiums and deposits increased by 8.6% to
$1.6 billion (2012: $1.4 billion).
Assets under administration gained 6.8% to $45.4 billion as at June 30
(2012: $42.5 billion).
"Despite a challenging macro-economic environment, we are transforming
our business and investing in retail and group solutions to take
advantage of opportunities in our chosen markets," said Charles Guay,
President of Standard Life.
"To maintain momentum in retail markets, we are leveraging the global
expertise and capabilities of our asset manager,
Standard Life Investments Inc., and providing conservative investors
seeking income with alternatives to traditional investments and savings
solutions," Mr. Guay continued. "We recently introduced our Global
Absolute Return Strategies (GARS) Fund for retail investors that
follows on the success of the GARS solution for Canadian group plans
introduced in 2011. We have increased our range of mutual funds which
is helping us gain traction in the investment dealers' network."
"Our investments in workplace retirement solutions focus on the evolving
needs of employers and their employees. We now offer a series of LDI
Fixed Income Funds for small and midsized pension plans to help address
the challenges of a low interest environment. We also added Indexed
Target Date Funds (ITDF) and our Global Absolute Return Strategies
(GARS) Fund to our investment platform," Mr. Guay said. "Pension in a
Box was recently launched as a simple, comprehensive online solution
for small and medium enterprises. We are ready to offer Pooled
Retirement Pension Plans (PRPP) when enabling legislation is adopted.
We continue to implement our customer experience improvement program,
as well, with enhanced reporting tools and web-based transactional
Second quarter 2013
Group savings and retirement premiums and deposits decreased by 5.3% to $671 million
(2012: $709 million) reflecting the uneven pattern of this business.
Premiums for group insurance and disability management solutions fell by
1% to $176 million (2012: $178 million).
Premiums and deposits for retail products (excluding life insurance
products) increased by 7.4% to $448 million (2012: $418 million).
Demand was particularly strong for Standard Life's Ideal Segregated
Funds, including Signature 2.0 Funds, which grew 10.7% to
$293.8 million (2012: $265.3 million) and grew by 32% to $291.6 million
(2012: $220.8 million) when the discontinued GLWB product is excluded.
In the segregated funds sector, Standard Life remains the fastest
growing company in Canada.
Standard Life Financial's main operating subsidiary, The Standard Life
Assurance Company of Canada, reported a solvency ratio of 263% at the
end of June (December 2012: 277%) following a dividend payment of $250
million. Its parent company, Standard Life plc, maintains a robust
capital position, assisted by the de-risking of the business over the
past few years.
Standard Life in Canada is a leading provider of long-term savings and
investments solutions. The company will maintain its focus on core
business segments of:
Group savings and retirement plans
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
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).
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 12 months ending
December 31. Standard Life Financial Inc. follows the same schedule.
In March 2013, Standard & Poor's reaffirmed the financial strength
ratings of Standard Life's main operating company in Canada at A+.
The Q2 2013 results of Standard Life plc (LSE: SL.L) published earlier
today are available online.
About Standard Life
Standard Life Financial Inc. wholly owns The Standard Life Assurance
Company of Canada and Standard Life Mutual Funds Ltd. which provide
long-term savings, investment and insurance solutions to more than 1.4
million Canadians, including group retirement and insurance plan
Standard Life in Canada has been doing business for 180 years and has
approximately 2,000 employees. It 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 and operates in the United Kingdom, Europe, North America and
Asia, and globally with Standard Life Investments Ltd.
As of June 30, 2013, Standard Life plc had $372.5 billion in assets
under administration, including $45.4 billion in Canada through
Standard Life Financial.
SOURCE: STANDARD LIFE
For further information:
514-499-7999, ext. 8150