Standard Life's premiums and deposits in Canada increase by 34% in the third quarter

Standard Life's premiums and deposits in Canada increase by 34% in the third 
Note: All figures are based on IFRS and are shown in Canadian dollars. All 
comparisons are with the corresponding period of2011, unless otherwise 
MONTREAL, Oct. 31, 2012 /CNW Telbec/ - Standard Life Financial Inc. ("Standard 
Life") today reported that premiums and deposits reached $1.6billion in the 
third quarter of 2012 (2011: $1.2 billion). The strong performance was 
largely driven by the insurance subsidiary's group savings and retirement 
business which grew by 56%. 
Assets under administration were 12% higher at $44 billion at the end of the 
third quarter (2011: $40 billion), mainly due to positive net flows and market 
appreciation. This represents an increase of $3 billion since the end of 2011 
(December 31, 2011: $41 billion). 
Charles Guay, President, said "We've performed well. We focus our expertise on 
opportunities in long-term savings and investments and it's paying off. We're 
seeing a strong momentum in the pipeline of new pension business coming in. On 
the retail side, we are gaining ground with the fastest growing segregated 
funds offering in Canada." 
"During the quarter we also announced our first Canadian dollar debt issuance 
raising C$400 million. The heavily over-subscribed order book for this was a 
powerful signal of investors' confidence in our financial strength and our 
strategy." added Mr. Guay. 
Growth in all three business segments
Premiums and deposits from the group savings and retirement business amounted 
to $984 million (2011: $630 million). The core business segment of defined 
contribution plans experienced premium and deposit growth of 13% to $565 
million (2011:$499 million). A single large mandate was the other 
significant contributor to third quarter growth. 
The business from group insurance and disability management activities grew 4% 
to $180 million (2011: $174 million). An 8% increase in disability management 
premiums was the main driver of segment growth. 
Premiums and deposits for retail savings and retirement solutions were up 7% 
to $358 million (2011: $336 million). The growth was driven by strong mutual 
fund sales, which grew 31% to $99 million (2011:$76 million), and the 
continued success of Standard Life's traditional retail segregated funds, 
which grew by 12% to $191 million (2011: $170 million). Positive mutual fund 
results were a direct result of better fund performance in fixed income and 
yield-oriented products, and initiatives to better promote funds. 
Successful subordinated debenture issue
In September, the insurance subsidiary raised $400 million in its first 
subordinated debt offering in Canada, by way of a private placement. The 
proceeds from the debt issuance will initially be held in Canada for general 
corporate purposes and, subject to local regulatory approval, may be used to 
repay, in whole or in part, existing internal subordinated debt to Standard 
Life plc. 
Solid capital position
The insurance subsidiary reported a solvency ratio of 261% at the end of 
September (December 2011: 204%). The increase is mainly attributable to the 
$400 million subordinated debt issue. Any repayment of internal debt to 
Standard Life plc would lower the solvency ratio. 
The low interest rate environment and uncertain financial markets in Canada 
present some challenges. The outlook for the Canadian economy however remains 
steady and Standard Life is confident in its growth prospects for the rest of 
2012. The company will continue focussing on three core business segments: 

    --  Group defined contribution retirement plans
    --  Retail investment funds
    --  Disability prevention and management services for employers

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. Total premiums and deposits reported in Q3 of 2012 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.
  2. 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

  3. 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

  4. In July 2012, Standard & Poor's reaffirmed the financial strength 
 ratings of Standard Life's main operating company in Canada at 
  5. Standard Life plc (LSE: SL.L) 2012 Q3 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 September 30, 2012, Standard Life plc had $337 billion in assets under 
administration, including $44billion in Canada through Standard Life 
Financial Inc. 
Mélanie Tardif, CPA, CMA 514-499-7999, ext. 8150, or 1-877-499-9555, ext. 
To view this news release in HTML formatting, please use the following URL: 
ST: Quebec
-0- Oct/31/2012 11:30 GMT
Press spacebar to pause and continue. Press esc to stop.