MONTREAL, April 11, 2012 /CNW Telbec/ - The Standard Life Assurance Company of Canada today announced it is temporarily suspending new sales of Ideal Income Series, its Guaranteed Lifetime Withdrawal Benefit product or GLWB, effective April 16, 2012.
Standard Life believes that its decision is a responsible one for its clients, advisors and the business given the current economic and regulatory environments. "Our industry is challenged by historically low interest rates, market volatility and strengthened regulatory capital requirements," said Sylvain Messier, Vice-President, Strategy and Development at Standard Life.
Since GLWBs were introduced in Canada in 2006, several industry players altered their products. "Standard Life believes that another round of changes to this type of product is inevitable. Under these conditions, we are suspending new sales of our GLWB and concentrating on solutions that address client needs and meet advisor expectations over the long term," added Mr. Messier.
This measure will remain in effect until the economic and regulatory environments improve. In the meantime, Standard Life will continue to explore suitable alternatives.
The Ideal Income Series (GLWB) is part of Standard Life's Ideal Segregated Funds - Signature Series family, which includes the Ideal 75/100 and the Ideal 100/100 Series that provides capital protection at maturity and on death. Standard Life's segregated fund offering is core to the company's retail business and remains a significant driver for growth.
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 C$314 billion in assets under administration, including C$41 billion in Canada through Standard Life Financial.
For further information:
Valérie Lamarre, Senior Advisor
External Communications and Public Affairs
514-499-7999, ext. 8150 / [email protected]