Note: All figures are based on IFRS and are shown in Canadian dollars.
All comparisons are with the corresponding period of 2013, unless
Net income of $158 million for the first half of 2014, up 229%
Assets under administration at $52 billion, up 7%
Premiums and deposits at $1.5 billion, up 18%
Solvency ratio at 232%
MONTREAL, Aug. 5, 2014 /CNW Telbec/ - Standard Life Financial Inc.
("Standard Life") today reported net income of $158 million for the
first half of 2014 (2013: $48 million) and premiums and deposits
increased by 18% at $1.5 billion for the second quarter of 2014 (2013:
$1.3 billion). The increase is driven by strong sales in the fee-based
business. Assets under administration also gained 7% to $52 billion
(Dec. 2013: $48 billion) at the end of the second quarter.
Charles Guay, President of Standard Life, said: "Our excellent
performance shows that customers and partners believe in our commitment
to meet their needs by delivering innovative products and solutions.
Canadians are also hearing our message and taking action to fight
financial inertia. Our strategy to leverage Standard Life Investments'
leading global investment capabilities to meet customer needs has shown
great success resulting in a growth of our retail wealth solutions
revenue and an increase in the number of advisors recommending our
"Our approach to helping customers transition to retirement with Member
Financial Services Centre is showing good results. We also continued to
develop our strategy to meet the specific needs of small and medium
businesses with the launch of our Voluntary Retirement Savings Plan
solution in Quebec," added Mr.Guay.
Premiums and deposits for individual wealth solutions increased by 34% to $601 million (2013: $449 million) in the
second quarter. The growth was driven by the success of the flagship
Ideal Segregated Funds Signature 2.0. In the second quarter, segregated
funds sales were up 39% to $403 million (2013: $289 million).
Mutual fund sales are also showing a marked improvement. They increased
by 29% to $107 million (2013: $83 million) in the second quarter,
partly due to the success of global funds introduced in the last few
years such as the Global Absolute Return Strategies Fund. Standard Life
Mutual Funds continues its strategy to increase its global funds
offering by introducing two new emerging market funds to Canadian
investors in the second quarter.
Group savings and retirement premiums and deposits rose by 12% to $752 million (2013: $671 million).
Core defined contribution business was up by 14% to $664 million (2013:
$583 million). To support the launch of Voluntary Retirement Savings
Plan in Quebec, strategic alliances were signed with leading payroll
service providers to help business owners implement and administer this
program and any similar programs that will be introduced in other
Group insurance and disability management premiums and deposits gained 3% to $183 million (2013: $176 million),
benefiting from Standard Life's improvement of its drug management
services for plan sponsors and increased online services capabilities
Standard Life Financial Inc's primary operating subsidiary, The Standard
Life Assurance Company of Canada, reported a strong solvency ratio of 232% at the end of June (Dec. 2013: 261%) following the payment of a
$345 million dividend to Standard Life plc.
Standard Life is committed to helping Canadians look forward to their
financial future with confidence and optimism. To do so, the company
expects to continue to grow its business by maintaining its focus on
the needs of customers in its core business segments:
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
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). They also 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 one of Canada's leading providers of saving and retirement plans to Canadian employers, Standard Life offers a suite of solutions that range from low-cost PRPP and VRSP as well as basic Express and Flexible Pension in a Box that meet the
specific needs of small and medium-sized businesses, to fully
customizable defined contribution plans.
On December 3, 2013, the National Assembly of Quebec passed Bill 39 that
aims at creating the Quebec pooled registered pension plan version for
Quebec salaried and self-employed workers, which is the Voluntary
Retirement Savings Plan (VRSP).The Voluntary Retirement Savings Plan
Act came into effect on July 1, 2014.
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) published earlier today its 2014 half-year
results available online.
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.
About Standard Life Financial
Canadian-based Standard Life Financial is part of the Standard Life
group of companies. It provides long-term savings, investment and
insurance solutions to more than 1.4 million Canadians, including group
retirement and insurance plan members, managing $52 billion of assets.
It has 2,000 employees, and its main operating subsidiaries are The
Standard Life Assurance Company of Canada and Standard Life Mutual
About Standard Life group
At Standard Life we're in the business of helping build a more
prosperous world. We're dedicated to making sure that everything we do
helps our customers to save and invest for their future, our industry
to improve and our society to progress. These things have been
important to us since we were established in Edinburgh in 1825.
Since then, we've also been growing globally. Today, the Standard Life
group employs around 8,500 people internationally - through businesses
in the UK, Europe, North America and Asia. We're one of the Fortune
Global 500's largest companies by revenue. And Standard Life plc is
listed on the London Stock Exchange with around 1.3 million individual
shareholders across over 50 countries.
Around six million customers worldwide trust us with their financial
future - and we're responsible for the administration of over £254
billion (CA $463 billion) of their assets. We support a further 16
million customers through our Chinese and Indian joint venture
businesses. The Standard Life Investments brand also offers truly
global asset management expertise with strong investment capabilities.
Wherever we operate in the world, we're motivated by a sense of
responsibility. It's what helps us to be a sustainable business. We're
proud to be listed as a leader for corporate sustainability in our
industry in the Dow Jones Sustainability Indices (DJSI World and DJSI
All figures are as at June 30, 2014.
SOURCE: Standard Life
For further information:
514-499-7999, ext. 8150