Note: All figures are based on Canadian GAAP measures and shown in Canadian dollars. Unless otherwise stated, all comparisons are with the corresponding period of 2009.
MONTREAL, April 29 /CNW Telbec/ - Standard Life Financial Inc. today reported that, in the first quarter of 2010, premiums and deposits in Canada grew 15% to $1.3 billion (2009: $1.1 billion).
"We have started 2010 with confidence," said Joseph Iannicelli, President. "Our team has been focusing on growing the Canadian business, and our results for the first quarter point in the right direction. A strong and sustained growth in our retail business drove the overall improvement of our revenue, and this is encouraging."
Individual retirement, savings and insurance premiums and deposits increased by 46% to $479 million (2009: $329 million). Following the continued improvement in investor confidence, deposits in mutual funds have grown by 72% to $165 million (2009: $96 million). Segregated fund sales continued to rise, improving by 134% to $197 million (2009: $84 million), due to a well positioned offering in that segment of the market.
Group savings and retirement premiums and deposits grew slightly to $657 million (2009: $639 million), including a 6% increase in the core defined contribution segment.
Group insurance premiums were up 4% to $160 million (2009: $154 million). The continued strength of the company's disability management proposition led to a solid first quarter.
Client retention remains high at 93.8% in Q1 2010 (2009: 94.2%).
Sustained capital strength
The Standard Life Assurance Company of Canada sustained its capital and financial strength, reporting a solvency ratio of 217% (December 31, 2009: 213%; March 31, 2009: 203%). This was achieved once again without any need to access additional capital.
Standard Life maintains its positive outlook for the rest of 2010, although the external environment is likely to remain uncertain. The focus on expanding sales and distribution capabilities, as well as introducing new products in 2010, is expected to result in success in all three lines of business and more specifically in the core segments of retail investment funds, disability management and defined contribution pensions.
About Standard Life
Standard Life is a leading long-term savings and investments group headquartered in Scotland and operating internationally. Established in 1825, Standard Life provides retirement, investment and insurance solutions to over 6 million customers worldwide. The group has around 10,000 employees across the U.K., Canada, Ireland, Germany, Austria, India, the U.S., Hong Kong and mainland China. It had $279 billion in assets under administration, as of March 31, 2010.
In 2006, after 80 years as a mutual company, Standard Life Assurance Company demutualized and Standard Life plc was listed on the London Stock Exchange. Standard Life now has approximately 1.5 million shareholders in over 50 countries, including 13,000 in Canada.
In Canada, Standard Life has been doing business for over 175 years. Standard Life Financial Inc., which wholly owns The Standard Life Assurance Company of Canada and Standard Life Mutual Funds Ltd., is Standard Life plc's largest operation outside the U.K. With over 2,000 employees based in Montréal and in offices across Canada, it serves more than 1.3 million Canadians, including group insurance and retirement plan members. It had $37 billion of assets under administration, as at March 31, 2010.
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.
Note to editors:
You can access Standard Life plc (LSE: SL.L) 2010 first quarter revenue results published earlier today from the Latest News section of our website, at www.standardlife.ca.
SOURCE Standard Life
For further information: For further information: Ann-Marie Gagné, Manager, External Communications and Public Affairs, Standard Life, 1-877-499-9555 (ext. 4600), (514) 499-7999 (ext. 4600), firstname.lastname@example.org