Note: All figures are based on IFRS and are shown in Canadian dollars. All comparisons are with the corresponding period of 2011, unless otherwise stated.
- Net income at $80 million (for the first half of 2012)
- Premiums and deposits up 13% up to $1.3 billion
- Assets under administration up 5% to $42 billion
- Solvency ratio at 214%
MONTREAL, Aug. 14, 2012 /CNW Telbec/ - Standard Life Financial Inc. ("Standard Life") today reported net income of $80 million for the first half of 2012 (2011: $256 million) reflecting the impact of the low interest rate environment.
Momentum in new business was maintained with overall premiums and deposits increasing 13% to $1.3 billion for the second quarter of 2012 (2011: $1.2 billion). The growth was driven by a solid performance in the company's group savings and retirement business, up 15%, and its retail business, up 16%.
Assets under administration grew 5% to $42 billion at the end of the second quarter (2011: $40 billion), driven by net inflows and positive market movements. This represents an increase of $1 billion since the end of 2011 (December 31, 2011: $41 billion).
Group savings and retirement premiums and deposits increased 15% to $709 million (2011: $616 million), while the company saw a strong performance in its core business segment of defined contribution plans with premiums and deposits up 21% to $606 million (2011: $499 million).
The company's group benefits and disability management business premiums slightly increased 1% to $178 million (2011: $176 million).
Premiums and deposits for retail products (excluding life insurance products) were up 16% to $418 million (2011: $359 million) resulting from a strong demand for Standard Life's Ideal Segregated Funds, which grew 31% to $265 million (2011: $202 million). In addition, Standard Life increased its mutual funds market share with a 25% rise in sales to $106 million (2011: $85 million) due to improved fund performance and an enhanced product line-up.
Charles Guay, President and Chief Executive Officer, said, "We have a new management team in place and have continued to make good progress in repositioning our business, delivering products and services to meet the needs of our corporate and retail customers."
"Industry and macro-economic headwinds have made it a challenging half year, throughout which we continued to enhance our corporate and retail propositions to address the needs of our customers. We are positioned to take advantage of opportunities in the group pension market, encouraged by the pipeline of new business. Along with the sustained growth in our retail investment fund offering, this highlights our continued shift towards being a leading provider of long-term savings and investments solutions."
The Standard Life Assurance Company of Canada, Standard Life Financial's main operating subsidiary, reported a solvency ratio of 214% at the end of June (December 2011: 204%). Standard Life plc maintains a robust capital position, assisted by the de-risking of the business over the past few years.
Standard Life is confident in its prospects for the second half of 2012 despite the challenging economic and financial market conditions that persist.
While the low interest rate environment in Canada presents some challenges, the outlook for the Canadian economy remains steady. "Following the appointment of the new Canadian management team during the first half of the year, we expect improved operating performance as we focus on our expertise and opportunities in long-term savings and investments," added Mr.Guay.
Standard Life's priority remains to differentiate its business by providing innovative retirement and investments solutions 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).
- 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 the 12 months ending December 31. Standard Life Financial Inc. follows the same schedule.
- In July 2012, Standard & Poor's reaffirmed the financial strength ratings of Standard Life's main operating company in Canada at 'A+.
- Standard Life plc (LSE: SL.L) 2012 Q2 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 June 30, 2012, Standard Life plc had $327 billion in assets under administration, including $42 billion in Canada through Standard Life Financial.
SOURCE: STANDARD LIFE
For further information:
514-499-7999, ext. 4600, or 1-877-499-9555, ext. 4600