Note: All figures are based on IFRS and are shown in Canadian dollars.
All comparisons are with the corresponding period of 2013, unless
Premiums and deposits increased by 23% to $1.9 billion
Assets under administration grew by 8% to $50 billion
Solvency ratio at 228%
MONTREAL, April 30, 2014 /CNW Telbec/ - Standard Life Financial Inc.
("Standard Life") today reported that premiums and deposits increased
by 23% to $1.9 billion (2013: $1.6 billion) in the first quarter of
2014. The momentum in fee-based business is driven by the strong sales
of segregated funds. The group business also continued to progress.
Assets under administration grew by 8% to $50 billion (2013: $46
Charles Guay, President of Standard Life, said: "Our performance for the
first three months of the year reflects our constant focus on
delivering innovative products and solutions for our customers. We
launched a new online tool that simplifies reporting and enhances
governance of pension plans for employers and their advisors. We also
continued our campaign against financial inertia with the introduction
of the Standard Life Investor Confidence Index, which showed that
investors have greater confidence in their personal finances than they
do in the economy. Moreover, we recently submitted our application to
the AMF to be an authorized administrator of Quebec's VRSP.
Our revenue is steadily increasing with the notable success of our
individual wealth solutions, which include segregated funds and mutual
funds. We continue to strengthen our position in the market by
leveraging Standard Life Investments' leading global investment
capabilities through global funds such as the Global Absolute Return
Strategies fund and the US Monthly Income Fund," added Mr. Guay.
Standard Life Financial's primary operating subsidiary, The Standard
Life Assurance Company of Canada, reported a solvency ratio of 228% (December 2013: 261%) following the payment of a $345 million
dividend in the quarter.
Premiums and deposits for individual wealth solutions increased by 52% to $707 million (2013: $466 million). The
growth is mainly due to the success of the Ideal Segregated Funds. In
the first quarter of 2014, sales were up 52% to $474 million (2013:
$312 million), thanks to its flagship Ideal Segregated Funds Signature
2.0 solution, which continues to innovate by providing guarantees and
features that meet client needs in today's volatile environment.
Mutual fund sales also contributed to the growth of individual wealth
solutions. They gained 17% to $121 million (2013: $104 million), partly
because of the new global funds introduced in 2013, including the US
Monthly Income Fund.
Group savings and retirement premiums and deposits rose by 14% to $1 billion (2013: $892 million).
Core defined contribution business was up by 7% to $780 million (2013:
$727 million). The increase was driven in part by Standard Life's new
solutions, such as the Financial Education Centre and the Group
Retirement Centre, which assists pension plan members through all their
Group insurance and disability management premiums and deposits were stable at $180 million
(2013: $182 million).
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 will come 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 Q1
Trading Results and Interim Management statement, which are 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
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 the
main operating subsidiaries in Canada are The Standard Life Assurance
Company of Canada and Standard Life Mutual Funds Ltd.
The Canadian operation of Standard Life plc, its 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 $456 billion in assets under administration,
including $50 billion in Canada, as at March 31, 2014.
SOURCE: Standard Life
For further information:
514-499-7999, ext. 8150