Note: All figures are based on IFRS and are shown in Canadian dollars. All comparisons are with the corresponding period of 2013, unless otherwise stated.
- Premiums and deposits increased by 19% to $1.7 billion
- Total assets under administration up 8% to $52.1 billion
- Solvency ratio at 229%
MONTRÉAL, Oct. 29, 2014 /CNW Telbec/ - Standard Life Financial Inc. ("Standard Life") today reported premiums and deposits of its insurance subsidiary increased by 19% to $1.7 billion (2013: $1.4 billion) in the third quarter of 2014. The performance was mainly driven by solid results in the retail investment funds business, which grew by 38% in the period compared to last year's.
Assets under administration were 8% higher, compared to December 31 2013, at $52.1 billion (Dec. 2013: $48 billion), due to strong net sales in retail investment funds and positive market movements.
Charles Guay, President, said: "Our performance is a result of our continued commitment to offering superior service and solutions to our customers and partners. For a third consecutive year, we've been first in the market in net sales of segregated funds and we've reached the $6-billion mark in assets under management during the quarter."
"We also continued to focus on the specific needs of SMEs, with more and more SMEs and their brokers choosing our Pension in a Box solution. We've also had good traction since the launch of our Voluntary Retirement Savings Plan in Québec this summer, and we recently launched our federal Pooled Registered Pension Plan," added Mr. Guay.
Overall premiums and deposits in retail business were up 41% to $664 million (2013: $471 million) in the third quarter. The growth was driven by the continued success of the retail segregated funds, which grew 30% to $416 million (2013: $320 million).
Mutual fund sales have increased, up 77% to $115 million (2013: $65 million) in the third quarter. This is partly due to the success of global funds introduced in 2013, such as the Global Absolute Return Strategies Fund and the U.S. Monthly Income Fund.
Overall premiums and deposits in group savings and retirement rose by 10% to $798 million (2013: $725 million). Core defined contribution business was up by 10% to $623 million (2013: $566 million). Standard Life is also seeing positive results with its new approach to helping customers plan for retirement through its Member Financial Services Centre.
Group insurance and disability management premiums gained 3% to $180 million (2013: $174 million), benefiting from the improvement made to drug management services for plan sponsors and the new online service capabilities for customers.
Solid capital position maintained
Standard Life Financial's primary operating subsidiary, The Standard Life Assurance Company of Canada, reported a strong solvency ratio of 229% at the end of September (June 2014: 232%).
On September 3, 2014, Standard Life plc announced it had reached an agreement to sell its Canadian businesses, including Standard Life Financial, to Manulife Financial. The transaction is expected to complete in the first quarter of 2015, and is also conditional upon, among other things, approval from certain Canadian regulatory authorities. Standard Life plc shareholders approved the sale on October 3.
Standard Life continues to serve its clients in Canada and help them look forward to their financial future with confidence and optimism.
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
- Total premiums and deposits reported in Q3 of 2014 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.
- 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).
- According to Morningstar (August 2014), Standard Life's U.S. Monthly Income Fund has delivered top quartile performance over 12 months with returns of 18.7%. This fund invests in U.S. equities, U.S. credit and U.S. REITS. (Info to be confirmed and documented)
- 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 12 months ending December 31. Standard Life Financial follows the same schedule.
- Standard Life plc (LSE: SL.L) 2014 Q3 results published earlier today are available online.
About Standard Life
Standard Life Financial 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 are The Standard Life Assurance Company of Canada and Standard Life Mutual Funds Ltd.
Its parent company, Standard Life plc, has its headquarters in Scotland and operates in the UK, Europe, Asia and the Middle East. It had $581 billion in assets under administration, including $52.1 billion in Canada through Standard Life Financial at September 30, 2014.
SOURCE: Standard Life
For further information: Anne-Julie Gratton, 514-499-7999 or 1-877-499-9555, ext. 8150, [email protected]