Note: All figures are based on IFRS and are shown in Canadian dollars. All comparisons are with the corresponding period of 2010, unless otherwise stated. 2010 results have been restated, when required, to reflect the adoption of IFRS in 2011.
- Net income at $244 million
- Premiums and deposits increased to $5.3 billion
- Assets under administration grew to $41 billion
- Solvency ratio at 204%
MONTREAL, March 13, 2012 /CNW Telbec/ - Standard Life Financial Inc. ("Standard Life") reports net income of $244 million in 2011 (2010: $252 million). Despite a low interest rate environment, higher fee income from investment products and enhanced investment yields including gains from a robust property market were the main drivers of the profits in 2011.
Premiums and deposits increased 8% to $1.4 billion in the fourth quarter (2010: $1.3 billion), and grew 7% to $5.3 billion for the full year (2010: $5 billion). Growth was driven by a strong performance in group savings and retirement and group benefit and disability management businesses.
Assets under administration grew 5% to $41 billion at the end of 2011 compared to a year ago (2010: $39 billion).
"Standard Life has continued to grow its core business in 2011, despite the challenging economic conditions, particularly in the fourth quarter. We are poised to take advantage of market opportunities and confident that the growth prospects in our key markets will lead to sustained operating performance. Pooled Registered Pension Plans will open new routes to market for pension providers and we also seek acceleration in the conversion of defined benefit plans to defined contribution plans," said Charles Guay, newly appointed President.
Group savings and retirement business premiums and deposits increased 10% to $2.9 billion (2010: $2.7 billion), while the company saw a strong performance in its core business segment of defined contribution plans with premiums and deposits up 11% to $2.2 billion (2010: $2 billion).
The company's group benefit and disability management business grew 6% to $700 million in premiums (2010: $660 million). Overall, the group benefit business continued to perform well with strong growth in market share benefiting from large mandates. Disability management, the core segment in this business, continues to drive growth with a 10% increase in premiums.
In 2011, premiums and deposits for retail products remained at $1.7 billion. The growth continued to be driven by the strong demand for Standard Life's Ideal Segregated Funds, helped by the introduction of the Ideal Income Series (Guaranteed Lifetime Withdrawal Benefit product or GLWB) in 2011, but was offset by a lower demand for mutual funds.
The Standard Life Assurance Company of Canada, Standard Life Financial's main operating subsidiary, reported a solvency ratio of 204% compared to 226% as of January 1, 2011. The decrease is due to the payment of a dividend to Standard Life plc in the third quarter of 2011 and an increase in capital requirements largely due to economic conditions, partially offset by earnings in 2011.
Standard Life plc maintains a robust capital position, which, assisted by the de-risking of the business carried out over the last few years, continues to be largely insensitive to market movements. Direct shareholder exposure to debt issued by governments and banks in Greece, Ireland, Italy, Portugal and Spain is less than $79 million.
Standard Life continues to expect uncertain economic and financial market conditions but remains confident in its growth prospects for 2012. Standard Life's priority remains to differentiate its business by providing innovative retirement and investment solutions combined with a world-class customer experience. The company will maintain its focus on core business segments of:
- 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-GAAP measure. Standard Life includes in its calculation deposits from segregated and mutual funds, and premium equivalents of administrative services only (ASO).
- The adoption of the International Financial Reporting Standards (IFRS) in 2011 did not change the way Standard Life calculates premiums and deposits.
- In 2011, Standard & Poor's raised the financial strength ratings of Standard Life's main operating company in Canada to 'A+' based on the company's improved contribution of earnings and its core status to Standard Life plc.
- Standard Life plc (LSE: SL.L) 2011 Q4 and full-year 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 6 million customers worldwide and operates in the United Kingdom, Europe, North America and Asia Pacific, and globally with Standard Life Investments Ltd.
In Canada, Standard Life has been doing business for almost 180 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 UK. With about 2,000 employees, it provides long-term savings, investment and insurance solutions to more than 1.4 million Canadians, including group benefit and retirement plan members.
As of December 31, 2011, Standard Life plc had $314 billion in assets under administration, including $41 billion in Canada through Standard Life Financial.
For further information:
Senior Advisor, External Communications and Public Affairs
514-499-7999, ext. 8150