Note: All figures are based on IFRS and are shown in Canadian dollars.
All comparisons are with the corresponding period of 2011, unless
Net income grew by 77% to $431 million
Premiums and deposits increased by 10% to $5.9 billion
Assets under administration rose by 9% to $45 billion
A solvency ratio of 277%
MONTREAL, March 7, 2013 /CNW Telbec/ - Standard Life Financial Inc.
("Standard Life") reports good earnings performance in 2012 with net
income of $431 million (2011: $244 million), a year-on-year increase of
77%. The improvement was driven by higher fee income and investment
yields, as well as previously announced management actions. Premiums
and deposits gained 10% to $5.86 billion (2011: $5.33 billion) in 2012
and 9% to $1.49 billion (2011: $1.37 billion) in the fourth quarter.
Charles Guay, President of Standard Life, said: "I'm particularly
pleased with our overall performance this year. Despite a challenging
environment, we've been able to grow our earnings, grow our premiums
and deposits, and substantially lower the level of risk in our
business. Our market share increased in key product lines, especially
workplace retirement plans and segregated funds, as we focused on
better understanding our customers' priorities and offering value-added
solutions. I'm confident we're well positioned to take advantage of the
opportunities we see for the future. To do so, we'll further leverage
the expertise of our management team and the strength of our sales
force to sustain sales momentum and deliver consistent growth in 2013,
which marks our 180th anniversary in Canada."
Group savings and retirement premiums and deposits increased 11% to
$3.3 billion (2011: $2.9 billion). In the core segment of defined
contribution plans, premiums and deposits rose by 8% to $2.4 billion
(2011: $2.2 billion). This result was achieved through the delivery of
customer solutions to support plan sponsors and help plan members
address their retirement needs.
In 2012, premiums and deposits for retail savings and retirement
solutions rose by 11% to $1.9 billion (2011: $1.7 billion). Growth was
again driven by strong demand for Standard Life's Ideal Segregated
Funds. Although it suspended sales of the Ideal Income Series
guaranteed lifetime withdrawal benefit product in April 2012, Standard
Life continued to enhance its segregated fund offerings. For the year,
it was the fastest growing company in the sector. Mutual funds advanced
by 27% to $438 million (2011: $345 million) due to the success of fixed
income and yield-oriented products.
Group insurance and disability management premiums grew by 3% to
$719 million (2011: $700 million). In the core sector of disability
management, premiums increased by 9% to $210 million
(2011: $193 million). Large mandates contributed much of the growth in
Standard Life Financial's primary operating subsidiary, The Standard
Life Assurance Company of Canada, reported a solvency ratio of 277% as
at December 31, 2012, compared to 204% a year earlier. The increase
reflects both strong earnings and the issuance of $400 million in
subordinated debt in September 2012. The improved earnings in the
company's core segments are also attributable to actions taken by
management, including the timely sale of four commercial properties and
the renegotiation of a key reinsurance arrangement. The company will
continue to actively manage its capital position and expects its
solvency ratio to evolve in line with historical levels.
In 2012, Standard Life strengthened its operations and capital position
and laid the foundation for steady growth in the future. The company is
ready to take advantage of future market opportunities driven by
evolving demographics, customer preferences and regulatory change. It
will maintain a customer-centric focus by providing innovative
retirement and investment solutions in its three core business
Group defined contribution 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-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 2012 and 2011 include those
generated by individual life insurance products sold prior to 2012. The
Standard Life Assurance of Canada stopped selling individual life
insurance and critical illness products in 2012, but continues to
service the in-force block of business.
Standard Life's main operating company in Canada holds a financial
strength rating of 'A+' from Standard & Poor's.
Standard Life plc (LSE: SL.L) 2012 preliminary results published earlier
today are available online.
About Standard Life
Standard Life plc is a leading long-term savings and investment company
headquartered in Edinburgh, Scotland. Standard Life has around six
million customers worldwide and operates in the United Kingdom, Europe,
North America and Asia, and globally with Standard Life Investments
In Canada, Standard Life has been doing business for 180 years. It
operates under Standard Life Financial Inc., which wholly owns The
Standard Life Assurance Company of Canada and Standard Life Mutual
Funds Ltd. It is Standard Life plc's largest operation outside the UK
with about 2,000 employees. It provides long-term savings, investment
and insurance solutions to more than 1.4 million Canadians, including
group retirement and insurance plan members.
As of December 31, 2012, Standard Life plc had $353 billion in assets
under administration, including $45 billion in Canada through Standard
SOURCE: STANDARD LIFE
For further information:
514-499-7999, ext. 8150