Standard Life reports first half and second quarter 2013 results in Canada

Note: All figures are based on IFRS and shown in Canadian dollars. All comparisons are with the corresponding period in 2012, unless otherwise stated.

First half 2013

  • Net income of $48 million
  • Premiums and deposits of $2.9 billion
  • Assets under administration at $45.4 billion
  • Solvency ratio at 263%

MONTREAL, Aug. 8, 2013 /CNW Telbec/ - Standard Life Financial Inc. ("Standard Life") today reported net income of $48 million for the first six months of 2013 (2012: $78 million). These results reflect interest rate volatility and equity market returns.

Growth was maintained during the first half, as premiums and deposits rose 5.6% to $2.9 billion (2012: $2.8 billion). Expansion was driven by our retail business where demand for segregated funds increased by 8.5% to $609.5 million (2012: $561.9 million), and our group savings and retirement solutions where premiums and deposits increased by 8.6% to $1.6 billion (2012: $1.4 billion).

Assets under administration gained 6.8% to $45.4 billion as at June 30 (2012: $42.5 billion).

"Despite a challenging macro-economic environment, we are transforming our business and investing in retail and group solutions to take advantage of opportunities in our chosen markets," said Charles Guay, President of Standard Life.

"To maintain momentum in retail markets, we are leveraging the global expertise and capabilities of our asset manager, Standard Life Investments Inc., and providing conservative investors seeking income with alternatives to traditional investments and savings solutions," Mr. Guay continued. "We recently introduced our Global Absolute Return Strategies (GARS) Fund for retail investors that follows on the success of the GARS solution for Canadian group plans introduced in 2011. We have increased our range of mutual funds which is helping us gain traction in the investment dealers' network."

"Our investments in workplace retirement solutions focus on the evolving needs of employers and their employees. We now offer a series of LDI Fixed Income Funds for small and midsized pension plans to help address the challenges of a low interest environment. We also added Indexed Target Date Funds (ITDF) and our Global Absolute Return Strategies (GARS) Fund to our investment platform," Mr. Guay said. "Pension in a Box was recently launched as a simple, comprehensive online solution for small and medium enterprises. We are ready to offer Pooled Retirement Pension Plans (PRPP) when enabling legislation is adopted. We continue to implement our customer experience improvement program, as well, with enhanced reporting tools and web-based transactional capabilities."

Second quarter 2013

  • Group savings and retirement premiums and deposits decreased by 5.3% to $671 million (2012: $709 million) reflecting the uneven pattern of this business.
  • Premiums for group insurance and disability management solutions fell by 1% to $176 million (2012: $178 million).
  • Premiums and deposits for retail products (excluding life insurance products) increased by 7.4% to $448 million (2012: $418 million). Demand was particularly strong for Standard Life's Ideal Segregated Funds, including Signature 2.0 Funds, which grew 10.7% to $293.8 million (2012: $265.3 million) and grew by 32% to $291.6 million (2012: $220.8 million) when the discontinued GLWB product is excluded. In the segregated funds sector, Standard Life remains the fastest growing company in Canada.

Capital position
Standard Life Financial's main operating subsidiary, The Standard Life Assurance Company of Canada, reported a solvency ratio of 263% at the end of June (December 2012: 277%) following a dividend payment of $250 million. Its parent company, Standard Life plc, maintains a robust capital position, assisted by the de-risking of the business over the past few years.

Standard Life in Canada is a leading provider of long-term savings and investments solutions. The company will maintain its focus on core business segments of:

  • Group savings and retirement plans
  • Disability prevention and management services for employers
  • Retail investment funds

Forward-looking statements
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

  1. 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).
  2. As per UK securities regulations, Standard Life plc issues trading results and interim management statements for the three months ending March 31, and the nine months ending September 30. It reports full results for the six months ending June 30, and the 12 months ending December 31. Standard Life Financial Inc. follows the same schedule.
  3. In March 2013, Standard & Poor's reaffirmed the financial strength ratings of Standard Life's main operating company in Canada at A+.
  4. The Q2 2013 results of Standard Life plc (LSE: SL.L) published earlier today are available online.

About Standard Life
Standard Life Financial Inc. wholly owns The Standard Life Assurance Company of Canada and Standard Life Mutual Funds Ltd. which provide long-term savings, investment and insurance solutions to more than 1.4 million Canadians, including group retirement and insurance plan members.

Standard Life in Canada has been doing business for 180 years and has approximately 2,000 employees. It is the largest operation outside the United Kingdom of Standard Life plc, its parent company headquartered in Edinburgh, Scotland. Standard Life plc has around six million customers and operates in the United Kingdom, Europe, North America and Asia, and globally with Standard Life Investments Ltd.

As of June 30, 2013, Standard Life plc had $372.5 billion in assets under administration, including $45.4 billion in Canada through Standard Life Financial.


For further information:

Geoffrey King
514-499-7999, ext. 8150

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