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Standard Life plc SL. Interim Management Statement

  Standard Life plc (SL.) - Interim Management Statement

RNS Number : 9049P
Standard Life plc
31 October 2012




Standard Life plc

2012 Q3 Interim Management Statement

31 October 2012

                                                                             

Ready for market and regulatory changes

Continuing growth in assets under administration

· Group assets under administration of £211.9bn (31 December 2011: £198.4bn,
30 June 2012: £204.2bn)

· Long-term savings new business sales of £14.4bn (2011: £15.5bn)

· Long-term savings net flows of £2.5bn^1 (2011: £3.4bn^1)

· Standard Life Investments third party net inflows of £3.2bn^1 (2011:
£3.4bn^1)

· Standard Life Investments third party assets under management (AUM) of
£78.8bn (31 December 2011: £71.8bn, 30 June 2012: £74.3bn) with increasing
asset class and geographic reach



Strong balance sheet

· IGD surplus of £3.4bn (31 December 2011: £3.1bn, 30 June 2012: £3.0bn)
remains relatively insensitive to market movements

· IGD surplus includes CAD$400m subordinated debt issue in Canada

Successful transition to auto enrolment and Retail Distribution Review (RDR)
readiness

· Ready for auto enrolment and RDR with adviser charging now live on our
Wrap platform

· Agreement with RBS Group to provide RDR-ready proposition combining
platform and risk-based investment solutions





Delivering for our customers

· MyFolio has attracted assets of £1.9bn since launch in October 2010

· Standard Life Investments launched an Emerging Market Debt Fund,
broadening our investment offering

· Expanded our mutual funds range in Canada with two new fixed income funds
and increased market share

· Asia and Emerging Markets business won 'Best for adviser support/customer
service' in the UK offshore and Asia categories at the International Adviser
Life Awards, and is now open for business in Singapore

· HDFC Life increased its share of the private individual market to 17%^2
and was awarded 'Best life insurance provider - private sector' at the India
Best Bank and Financial Institution Awards

David Nish,Chief Executive, commented:

"Standard Life has performed well in the first nine months of the year,
continuing to grow our assets despite the uncertain economic environment.
Inflows across our long-term savings businesses and strong performance at
Standard Life Investments have helped to increase both Group assets under
administration and Standard Life Investments third party assets to record
levels.

"In the UK, we are ready to assist our customers, advisers and employers with
the significant regulatory changes already underway. The phased implementation
of auto enrolment has commenced and we are already offering fully
RDR-compliant adviser charging on our platforms. By combining our platform
technology with investment expertise and high levels of customer service, we
are in a unique position to meet the broadening demand for investment
solutions from customers, advisers and large financial institutions.

"In Canada, we have continued to expand our fee based offering and in
Singapore, we are now open for business.

"Uncertainty around the future of the Eurozone and difficult economic
conditions continue to impact consumer sentiment. However, we are confident
that the ongoing focus on increasing assets and improving the efficiency and
scalability of our business, will continue to drive improved returns for our
shareholders."









Unless otherwise stated, all comparisons are in Sterling and are for the nine
months ended 30 September 2011.

Continuing growth in assets under administration

                                                            Market and
Assets under           1 Jan    Gross               Net          other  30 Sep
administration          2012    flows Redemptions flows      movements    2012
Fee business (£bn)     162.8     20.0      (16.5)   3.5            8.6   174.9
Spread/risk
business (£bn)          25.2      1.1       (1.8) (0.7)            1.1    25.6
Other^3 (£bn)           10.4      0.3       (0.1)   0.2            0.8    11.4
Group AUA (£bn)        198.4     21.4      (18.4)   3.0           10.5   211.9

Group assets under administration increased from £198.4bn to £211.9bn. This
increase was driven by resilient, though lower, flows into our newer fee based
propositions and positive market movements. Notably, Standard Life Investments
had a strong first nine months of the year with net inflows of £3.2bn.
Excluding £1.8bn of previously announced expected outflows from a low revenue
yield mandate, net inflows were £5.0bn, representing an annualised 9% of
opening third party AUM.

Strong balance sheet

Our balance sheet continues to be robust with an IGD surplus of £3.4bn (31
December 2011: £3.1bn, 30 June 2012: £3.0bn), reflecting the payment of the
2011 final dividend of £216m in May 2012 and the successful CAD$400m
subordinated debt issue in Canada. Direct shareholder exposure to debt issued
by governments and banks in Greece, Ireland, Italy, Portugal and Spain is
lessthan £50m.

Outlook

Our industry in the UK is undergoing a period of significant change. Over the
past few years we have built a scalable business that is capitalising on the
opportunities that exist in our chosen markets. Combined with its leading
market positions, we expect the UK business to continue to perform well.

Standard Life Investments has opportunities to continue to expand its
capabilities and reach, both in the UK and internationally. While the low
interest rate environment in Canada presents some challenges, the outlook for
the Canadian economy remains steady. Following the appointment of a new
management team, we expect this business to drive improved operating
performance as we capitalise on our expertise and opportunities in long-term
savings and investments. Our Asia and Emerging Markets business is now better
aligned to execute our international strategy.

Overall, whilst the market environment continues to be challenging, our
business model, leading market positions and strong balance sheet will enable
us to continue to deliver ongoing improvements in value for customers and
shareholders.

UK and Europe

Operational highlights

· Demand for investment solutions driving flows into higher margin MyFolio
and Standard Life Wealth propositions

· Our platforms now have 209,000 customers with AUA up 30% to £13.8bn

· Total SIPP customers up 20% to 152,800 and AUA up 19% to £19.0bn

· 83,500 employees have joined our pension schemes since the start of the
year and we are now providing corporate pensions to 1.2m employees

· Agreement with RBS Group to provide RDR-ready proposition combining
platform and risk-based investment solutions

UK business continuing to build on our advantage in our chosen markets

                                                                 Market
                            1 Jan Gross               Net and other 30 Sep
                             2012 flows Redemptions flows     movements   2012
Retail fee business (£bn)    55.8   4.6       (4.6)     -           3.4   59.2
Corporate fee business
(£bn)                        22.0   2.3       (1.3)   1.0           0.9   23.9
UK fee business (£bn)        77.8   6.9       (5.9)   1.0           4.3   83.1
Institutional pensions
(£bn)                        17.5   3.1       (1.5)   1.6           1.6   20.7
Conventional with profits
(excl. annuities) (£bn)       5.3   0.2       (1.2) (1.0)           0.2    4.5
UK fee business total AUA
(£bn)                       100.6  10.2       (8.6)   1.6           6.1  108.3
Spread/risk business AUA
(£bn)                        14.4   0.5       (0.9) (0.4)           0.9   14.9
UK Total AUA backing
products (£bn)              115.0  10.7       (9.5)   1.2           7.0  123.2
Fee business revenue UK
(bps)                          73                                           73

UK fee business AUA grew by 8% to £108.3bn, reflecting a continuation of net
inflows and positive market movements. The average revenue yield across our UK
fee business remained stable at 73bps (1 January 2012: 73bps).

Retail business with scale and market leading propositions

                          1 Jan Gross               Net  Market and 30 Sep
                           2012 flows Redemptions flows other movements   2012
Retail fee business - new
(£bn)                      23.7   3.9       (1.8)   2.1             1.6   27.4
Retail fee business - old
(£bn)                      32.1   0.7       (2.8) (2.1)             1.8   31.8
Retail fee business (£bn)  55.8   4.6       (4.6)     -             3.4   59.2

Robust gross inflows in the first nine months of the year into our core retail
propositions of £4.6bn (2011: £5.3bn) were offset by outflows of £4.6bn (2011:
£4.4bn). Gross inflows in the quarter were £1.4bn (Q3 2011: £1.6bn).

Retail fee business - new

Gross flows into our new style propositions in the first nine months of the
year were £3.9bn (2011: £4.4bn) with over a third of these inflows going into
higher margin MyFolio and Standard Life Wealth investment solutions. Total net
flows into our new style propositions were £2.1bn. This is against a backdrop
of subdued consumer sentiment, ongoing economic uncertainty and increased
commission-based competition ahead of the Retail Distribution Review (RDR). We
expect these factors to persist in Q4.

Standard Life Wealth is the fastest growing provider of discretionary
investment management services in the UK as it continues to build a strong
presence in the IFA market. Net flows into Standard Life Wealth's higher
margin, '5 Star' DeFaqto rated, propositions increased by 95% to £572m (2011:
£294m) while assets doubled to £1.6bn (2011: £0.8bn). Our SIPP proposition
continues to grow with a 20% increase in customers and AUA up 19% to £19.0bn.

We have maintained good momentum in our platform propositions which continue
to attract customers, advisers and assets as we further enhance the features
and usability of our proposition. We have recently launched a flexible
drawdown offering which will make it easier for our customers to continue to
save with us long into their retirement.

Our recently announced partnership with RBS Group will give RBS, NatWest and
Ulster Bank private banking customers access, via Wrap, to a range of
risk-based investment solutions managed by Standard Life Investments either
through in-branch advisers or directly online. Our unique capability across
the value chain in point-of-sale technology, the quality of our Wrap platform,
together with the investment expertise of Standard Life Investments, positions
us well to provide RDR-ready propositions combining platform and risk-based
investment solutions to banks and other financial institutions.

We continue to be focused on meeting the needs of 'new model' advisers (both
independent and restricted) who are best placed to prosper in the new market
environment. We implemented fully RDR-compliant adviser charging on our
platforms on 15 October to help advisers make the operational changes needed
to position themselves for RDR implementation.Focus Solutions and threesixty
Services, together with our teams of account managers, provide Standard Life
with an ability to support advisers in developing business models compliant
with RDR and beyond, deepening our relationships with these firms. The number
of adviser firms on our Wrap platform increased by 15% to 1,117 (2011: 969).
We continue to embed our Wrap platform with existing adviser firms resulting
in the average AUA per firm rising to £9.5m (2011: £7.9m).

With RDR just two months away, our retail business is very well positioned for
growth by providing both IFAs and direct customers with valued long-term
savings and investment solutions.

Retail fee business - old

Retention in our older style business has been encouraging with outflows of
£2.8bn in line with the same period last year (2011: £2.8bn). This business
continues to see increments into existing policies, with £0.7bn gross flows in
the first nine months of the year (2011: £0.9bn). We continue to look at ways
of engaging with customers with maturing policies who may wish to continue to
save or annuitise with Standard Life.

Retail - spread/risk

UK spread/risk business AUA increased to £14.9bn, as the positive impact on
the value of debt securities from falling yields was partially offset by net
annuity outflows driven by scheduled payments. Gross annuity inflows were 27%
higher at £433m (2011: £340m) reflecting improved conversion and retention
activity which has increased the number of customers who choose to annuitise
with us.

Corporate business positioned for growth from market and regulatory trends

We continue to build momentum, winning 93 new schemes (2011: 123 new schemes)
with the number of employees joining our pension schemes since the start of
the year increasing by 42% to 83,500 (2011: 59,000 employees). The total
number of members in our schemes is now 1.2m.

Corporate pension net inflows, excluding Trustee Investment Plan (TIP)
business of Standard Life Investments, of £1.0bn (2011: £1.6bn) demonstrate
the strength of our corporate business at a time when employers are delaying
decision-making ahead of the phased introduction of auto enrolment, with net
inflows in the quarter of £265m (Q3 2011: £356m). We continue to build on our
strong relationships with employers and corporate benefit consultants and have
further enhanced our offering by building on the success of MyFolio risk-based
funds in the retail space, launching a suite of investment solutions,
including MyFolio, tailored for the corporate market.

The overall quality of our propositions and the high levels of customer
service we offer means we are well positioned to benefit from pension reform
and RDR. We expect auto enrolment to increase levels of employee participation
in the 35,000 schemes we administer for our clients, resulting in 400,000
potential additional savers. In addition, the introduction of auto enrolment
is leading many corporates to review their overall pension provision, giving
rise to high levels of enquiries and a growing pipeline from employers in our
target market. This will drive further growth in our business during 2013 and
beyond.

Germany and Ireland continuing to attract net inflows and grow assets

                          1 Jan Gross               Net  Market and 30 Sep
                           2012 flows Redemptions flows other movements   2012
Fee business AUA (£bn)      9.3   1.0       (0.5)   0.5             0.3   10.1
Spread/risk business AUA
(£bn)                       0.5     -           -     -               -    0.5
Total AUA backing
products (£bn)              9.8   1.0       (0.5)   0.5             0.3   10.6
Fee business revenue
(bps)                       189                                            171

Our Europe business, comprising our branches in Germany and Ireland, has been
brought under the leadership of Paul Matthews, UK and Europe Chief Executive.

Fee business AUA grew by 14%^4 to £10.1bn driven by a continuation of net
inflows and positive market movements. PVNBP sales of £705m were in line with
last year (2011: £708m), although net inflows of £493m were lower (2011:
£592m) reflecting poorer consumer sentiment due to austerity measures in
Ireland and ongoing economic uncertainty. The average revenue yield was lower
at 171bps (1 January 2012: 189bps) reflecting the charging structure of legacy
business.

Our MyFolio risk-based fund range, which has proved very popular in the UK, is
now available in Ireland where we have launched a regular premium savings
product. We continue to expand our unit linked proposition in Germany,
including the successful launch of Maxxcellence Invest, helping to increase
our unit linked market share.



Standard Life Investments

Operational highlights

· Third party net inflows of £3.2bn, including £2.6bn during the third
quarter, whilst the first half of the year was impacted by a single low margin
outflow of £1.8bn

· Demand for higher margin products driving increase in average third party
revenue yield to 39bps

· Continue to build a well diversified book of third party business by both
asset class and geography

· Expanding international distribution capability with 77% of net flows from
overseas

· Continuing to deliver robust investment performance

Continuing to attract net inflows into higher margin products

Third party   1 Jan Gross               Net        Market and other 30 Sep
assets         2012 flows Redemptions flows                   movements   2012
Fee business
(£bn)          71.8  12.2       (9.0)   3.2                         3.8   78.8
Fee business
revenue (bps)    37                                                         39

AUM in our third party business increased to £78.8bn and accounts for 48% of
total AUM. Total third party net inflows in the first nine months of the year
were £3.2bn (2011: £3.4bn) despite a previously announced outflow of £1.8bn
from a single low revenue yield mandate following a change in a client's
pension scheme strategy. Excluding this outflow, third party net inflows were
£5.0bn (2011: £3.4bn) representing an annualised 9% of opening AUM. We
continued to attract inflows into higher margin propositions which has helped
to increase overall average revenue yield on third party business to 39bps (1
January 2012: 37bps).

In the UK, demand for our MyFolio risk-based funds has driven MyFolio assets
to £1.9bn, including net inflows in the first nine months of this year of
£0.8bn. Our expertise in this area has helped to secure a partnership under
which we will provide a range of risk-based funds to RBS Group and its private
banking customers.

UK mutual funds net flows of £1.5bn (2011: £1.6bn) were robust despite
volatile market conditions while our share of the wholesale market in the UK
continues to grow, with UK mutual funds third party AUM now exceeding £13bn
(2011: £10.6bn).

We also continued to make progress in increasing our global presence. European
segregated business net inflows more than doubled to £668m (2011: £323m). Our
US business continues to gain traction with net sales of more than £1bn and
AUM in the John Hancock GARS fund in excess of US$1bn in less than nine months
since launch. AUM across our range of eight absolute return funds now exceeds
£19bn and we continue to see strong demand as investors seek investment
solutions that help to reduce volatility within their portfolios. Total third
party net flows from outside of the UK increased to £2.4bn (2011: £1.6bn).

Continuing to deliver robust investment performance

Although investment conditions have been challenging, longer term investment
performance continues to be robust with the money-weighted average for third
party assets above median over one, three, five and ten years. Our GARS funds
have outperformed their cash benchmarks over all key time periods since
inception and the strength of our mutual fund suite is shown by the proportion
of eligible and actively managed funds (20 out of 32) rated 'Silver' or above
by Standard & Poor's in the UK.

The pipeline for institutional business remains strong with fixed income, real
estate and multi-asset products attracting a lot of interest, increasingly
from outside the UK. There is also positive demand for our mutual funds in the
UK and for our SICAV funds in continental Europe.

Canada

Operational highlights

· New management team focussing on growing new business, leveraging our
expertise and opportunities in long-term savings and investments

· Fee business AUA up 9%^4 to £15.6bn with fee business net inflows up 56%^4
to £612m, driven by the fastest growing retail segregated fund franchise in
the country

· Launch of group savings and retirement target date funds, a new addition to
our unique solution in the Canadian marketplace

· Expanded our mutual funds range with two new fixed income funds and
increased market share

Continued growth in fee business

                                Gross
                          1 Jan                     Net      Market and 30 Sep
                           2012 flows Redemptions flows other movements   2012
Fee business AUA (£bn)     14.3   2.1       (1.5)   0.6             0.7   15.6
Spread/risk business AUA
(£bn)                      10.3   0.6       (0.9) (0.3)             0.2   10.2
Total AUA backing
products (£bn)             24.6   2.7       (2.4)   0.3             0.9   25.8
Fee business revenue
(bps)                       117                                            115

Fee business AUA in Canada increased by 9%^4 to £15.6bn driven by net inflows
of £612m, up 56%^4 (2011: £394m), as well as positive market movements.
Individual savings and retirement fee business net flows increased to £236m
(2011: £145m), largely driven by retail segregated funds, which ranked first
in the country in terms of net flows^5, while mutual funds net outflows
improved to £7m (2011: £87m). Net inflows into group savings and retirement
fee business increased by 14%^4 to £383m (2011: £336m) reflecting our success
in securing a number of large scheme wins in the period. Group savings and
retirement fee business sales on a PVNBP basis increased by 89%^4 to £1.2bn
(2011: £0.6bn) reflecting our success in securing new business and also lower
discount rates. The average revenue yield on fee business decreased to 115bps
(1 January 2012: 117bps) reflecting market pricing conditions and also
business mix.

Spread/risk business AUA decreased to £10.2bn as scheduled outflows from our
annuity back book and lower annuity and term fund inflows were partly offset
by positive market movements. The Group insurance and disability management
business continues to perform well but with lower PVNBP sales of £466m (2011:
£681m) reflecting particularly large mandate wins in the first nine months of
the previous year.

We continue to enhance our propositions for both corporate and retail
customers. During the first nine months of the year we launched our group
savings and retirement target date funds, adding to our unique range of
solutions in the Canadian marketplace. We also launched a new online health
claim solution to improve our customers' experience and our operational
efficiency.

Asia and Emerging Markets

Operational highlights

· Creation of Asia and Emerging Markets business focusing on fast growing
Asian and offshore markets

· Opening of Singapore branch targeting high net worth clients

· Won 'Best for adviser support/customer service' in the UK offshore and Asia
categories and also 'Best regular premium investment product' in the UK
offshore category at the International Adviser Life Awards

· Increased distribution capability in China and achieved 17%^2 private
individual market share in India joint venture

Continued growth in assets across our wholly owned and joint venture
businesses

                          1 Jan Gross               Net  Market and 30 Sep
                           2012 flows Redemptions flows other movements   2012
Wholly owned fee business
AUA (£bn)                   2.5   0.6       (0.2)   0.4             0.2    3.1
India and China JV
businesses AUA (£bn)        1.2   0.3       (0.1)   0.2               -    1.4
Total AUA backing
products (£bn)              3.7   0.9       (0.3)   0.6             0.2    4.5
Fee business revenue
(bps)                       205                                            192

Fee business AUA across our wholly owned operations, comprising Hong Kong and
our offshore business based in Ireland, increased by 24%^4 to £3.1bn, driven
by a combination of positive market movements and a continuation of net
inflows. We have increased our share of the UK offshore market, despite net
inflows for the nine months of £386m being lower compared to the same period
last year (2011: £491m). This also reflects our notable success in the first
half of 2011 in securing a number of large cases in our market leading
offshore bond business. Overall, our wholly owned net inflows in the quarter
increased by 27%^4 to £151m (Q3 2011: £120m).

Net flows in the first nine months of the year into the India and China joint
venture businesses of £195m were in line with prior year (2011: £207m), with
HDFC Life continuing to increase its share of the private individual market
from 15% to 17%^2, and Heng An Standard Life continuing to expand its
distribution capability.

For further information please contact:

Institutional Equity Investors                 Retail Equity Investors
Lorraine Rees          020 7872 4124 / 07738   Capita Registrars 0845 113 0045
                       300 878

                       
Jakub Rosochowski
                       0131 245 8028 / 07515
                       298 608
                      

Craig Cameron          0131 245 3848 / 07515
                       298 330
Media                                          Debt Investors
Nicola McGowan         0131 245 4016 / 07872   Scott Forrest     0131 245 6045
                       191 341
Tulchan Communications 020 7353 4200           Nick Mardon       0131 245 6371

Newswires and online publications

We will hold a conference call for newswires and online publications at 07:30
(UK time). Participants should dial +44 (0)20 3059 8125 and quote Standard
Life Q3 IMS 2012. A replay facility will be available for seven days. To
access the replay please dial +44 (0)121 260 4861. The pass code is 2794852#.

Investors and Analysts

A conference call for analysts and investors will take place at 09:00 (UK
time), hosted by Jackie Hunt, Chief Financial Officer, and Paul Matthews, UK
and Europe Chief Executive. Participants should dial +44 (0)20 3059 8125 and
quote Standard Life 2012 Q3 IMS. There will also be a live audiocast at the
same time with the facility to ask questions, which can be accessed via our
website www.standardlife.com.



Notes to Editors:

1 In order to be consistent with the presentation of new business information,
  certain products are included in both Standard Life Investments third party
  AUM and other segments. Therefore, at a Group level an elimination
  adjustment is required to remove any duplication, in addition to other
  necessary consolidation adjustments.
2 Share of individual private market for Indian financial year to date, as at
  end of August.
3 Other assets included within AUA of £11.4bn (31 December 2011: £10.4bn, 30
  June 2012: £11.2bn) comprise assets not backing products, joint ventures,
  non-life assets and consolidation/elimination adjustments.
4 On a constant currency basis.
5 Retail segregated funds net flows year to date, as at end of August.

Group assets under administration (summary)

Nine months ended 30 September 2012

                                                                       Closing
                             Opening                            Market
                              AUA at                                    AUA at
                                     Gross               Net and other
                               1 Jan                                    30 Sep
                                2012 flows Redemptions flows movements    2012
                                 £bn   £bn         £bn   £bn       £bn     £bn
Fee business
UK retail new                   23.7   3.9       (1.8)   2.1       1.6    27.4
UK retail old                   32.1   0.7       (2.8) (2.1)       1.8    31.8
UK retail                       55.8   4.6       (4.6)     -       3.4    59.2
Corporate                       22.0   2.3       (1.3)   1.0       0.9    23.9
UK retail and corporate         77.8   6.9       (5.9)   1.0       4.3    83.1
Institutional pensions          17.5   3.1       (1.5)   1.6       1.6    20.7
Conventional with profits        5.3   0.2       (1.2) (1.0)       0.2     4.5
UK total                       100.6  10.2       (8.6)   1.6       6.1   108.3
Europe                           9.3   1.0       (0.5)   0.5       0.3    10.1
Standard Life Investments
third party                     71.8  12.2       (9.0)   3.2       3.8    78.8
Canada                          14.3   2.1       (1.5)   0.6       0.7    15.6
Asia and Emerging Markets
(wholly owned)                   2.5   0.6       (0.2)   0.4       0.2     3.1
Consolidation/eliminations^1  (35.7) (6.1)         3.3 (2.8)     (2.5)  (41.0)
Total fee business             162.8  20.0      (16.5)   3.5       8.6   174.9
Spread/risk
UK                              14.4   0.5       (0.9) (0.4)       0.9    14.9
Europe                           0.5     -           -     -         -     0.5
Canada                          10.3   0.6       (0.9) (0.3)       0.2    10.2
Total spread/risk business      25.2   1.1       (1.8) (0.7)       1.1    25.6
Assets not backing products
in long-term savings
business                         8.5     -           -     -       0.8     9.3
Joint ventures                   1.2   0.3       (0.1)   0.2         -     1.4
Other corporate assets           1.6     -           -     -     (0.1)     1.5
Other
consolidation/eliminations^1   (0.9)     -           -     -       0.1   (0.8)
Group assets under
administration                 198.4  21.4      (18.4)   3.0      10.5   211.9
Group assets under
administration managed by:
Standard Life Group entities  163.3                                      171.5
Other third party managers    35.1                                        40.4
Total                         198.4                                      211.9

^1 In order to be consistent with the presentation of new business
information, certain products are included in both Standard Life Investments
third party AUM and other segments. Therefore, at a Group level an elimination
adjustment is required to remove any duplication, in addition to other
necessary consolidation adjustments.

Group assets under administration (summary)

Nine months ended 30 September 2011

                             Opening                                   Closing
                                                                Market
                              AUA at                                    AUA at
                                     Gross               Net and other
                               1 Jan                                    30 Sep
                                2011 flows Redemptions flows movements    2011
                                 £bn   £bn         £bn   £bn       £bn     £bn
Fee business
UK retail new                   21.0   4.4       (1.6)   2.8     (1.3)    22.5
UK retail old                   34.5   0.9       (2.8) (1.9)     (1.6)    31.0
UK retail^1                     55.5   5.3       (4.4)   0.9     (2.9)    53.5
Corporate                       21.0   3.1       (1.5)   1.6     (2.0)    20.6
UK retail and corporate         76.5   8.4       (5.9)   2.5     (4.9)    74.1
Institutional pensions          15.8   2.5       (1.4)   1.1     (0.4)    16.5
Conventional with profits        6.6   0.1       (1.2) (1.1)         -     5.5
UK total                        98.9  11.0       (8.5)   2.5     (5.3)    96.1
Europe                           8.7   1.1       (0.4)   0.7     (0.3)     9.1
Standard Life Investments
third party                     71.6  10.2       (6.7)   3.5     (6.0)    69.1
Canada                          14.0   1.8       (1.4)   0.4     (1.2)    13.2
Asia and Emerging Markets
(wholly owned)                   1.9   0.7       (0.2)   0.5     (0.1)     2.3
Consolidation/eliminations^2  (32.2) (5.6)         3.2 (2.4)       1.0  (33.6)
Total fee business             162.9  19.2      (14.0)   5.2    (11.9)   156.2
Spread/risk
UK                              13.4   0.4       (0.9) (0.5)       0.9    13.8
Europe                           0.5     -           -     -         -     0.5
Canada                          10.1   0.7       (1.0) (0.3)     (0.2)     9.6
Total spread/risk business      24.0   1.1       (1.9) (0.8)       0.7    23.9
Assets not backing products
in long-term savings
business^1                       8.1 (0.1)           - (0.1)       1.0     9.0
Joint ventures                   1.2   0.3       (0.1)   0.2     (0.2)     1.2
Other corporate assets           1.4     -           -     -       0.3     1.7
Other
consolidation/eliminations^2   (0.8)     -           -     -     (0.1)   (0.9)
Group assets under
administration                 196.8  20.5      (16.0)   4.5    (10.2)   191.1
Group assets under
administration managed by:
Standard Life Group entities   164.0                                     158.0
Other third party managers      32.8                                      33.1
Total                          196.8                                     191.1

^1  Standard Life Wealth was disclosed separately for the first time in the
results for the year ended 31 December 2011. The 2011 figures have been
restated.

^2 In order to be consistent with the presentation of new business
information, certain products are included in both Standard Life Investments
third party AUM and other segments. Therefore, at a Group level an elimination
adjustment is required to remove any duplication, in addition to other
necessary consolidation adjustments.



Group assets under administration

Nine months ended 30 September 2012

                                                                       Closing
                             Opening                            Market
                              AUA at                                    AUA at
                                     Gross               Net and other
                  Fee (F) -    1 Jan                                    30 Sep
                 Spread/risk    2012 flows Redemptions flows movements    2012
                    (S/R)        £bn   £bn         £bn   £bn       £bn     £bn
UK
Individual SIPP       F         16.4   2.1       (1.4)   0.7       1.2    18.3
Other individual
pensions              F         22.6   0.5       (1.7) (1.2)       1.4    22.8
Investment bonds      F          7.6   0.1       (0.9) (0.8)       0.4     7.2
Mutual funds          F          6.1   1.2       (0.3)   0.9       0.2     7.2
Legacy life
(excluding
conventional
with profits)         F          2.2   0.1       (0.3) (0.2)       0.1     2.1
Wealth^1              F          0.9   0.6           -   0.6       0.1     1.6
UK retail fee
business                        55.8   4.6       (4.6)     -       3.4    59.2
Corporate
pensions              F         22.0   2.3       (1.3)   1.0       0.9    23.9
UK retail and
corporate fee
business                        77.8   6.9       (5.9)   1.0       4.3    83.1
Institutional
pensions              F         17.5   3.1       (1.5)   1.6       1.6    20.7
Conventional
with profits          F          5.3   0.2       (1.2) (1.0)       0.2     4.5
UK total fee
business                       100.6  10.2       (8.6)   1.6       6.1   108.3
Annuities            S/R        14.4   0.5       (0.9) (0.4)       0.9    14.9
Assets not
backing products                 7.0     -           -     -       0.2     7.2
UK long-term
savings                        122.0  10.7       (9.5)   1.2       7.2   130.4
Europe
Fee^1                 F          9.3   1.0       (0.5)   0.5       0.3    10.1
Spread/risk          S/R         0.5     -           -     -         -     0.5
Europe long-term
savings                          9.8   1.0       (0.5)   0.5       0.3    10.6
UK and Europe
long-term
savings                        131.8  11.7      (10.0)   1.7       7.5   141.0
Canada
Fee                   F         10.9   1.4       (1.0)   0.4       0.5    11.8
Spread/risk          S/R         3.8   0.1       (0.3) (0.2)       0.1     3.7
Group savings
and retirement                  14.7   1.5       (1.3)   0.2       0.6    15.5
Fee                   F          1.9   0.5       (0.3)   0.2       0.1     2.2
Spread/risk          S/R         5.9   0.2       (0.4) (0.2)       0.2     5.9
Individual
insurance,
savings and
retirement                       7.8   0.7       (0.7)     -       0.3     8.1
Group insurance      S/R         0.6   0.3       (0.2)   0.1     (0.1)     0.6
Mutual funds          F          1.5   0.2       (0.2)     -       0.1     1.6
Assets not
backing products                 1.5     -           -     -       0.6     2.1
Canada long-term
savings                         26.1   2.7       (2.4)   0.3       1.5    27.9
Asia and
Emerging Markets
Wholly owned
long-term
savings               F          2.5   0.6       (0.2)   0.4       0.2     3.1
Joint ventures
long-term
savings^4                        1.2   0.3       (0.1)   0.2         -     1.4
Asia and
Emerging Markets
long-term
savings                          3.7   0.9       (0.3)   0.6       0.2     4.5
Consolidation
and elimination
adjustments^1                  (0.2) (0.1)           - (0.1)       0.1   (0.2)
Total worldwide
long-term
savings                        161.4  15.2      (12.7)   2.5       9.3   173.2
Other corporate
assets                           1.6     -           -     -     (0.1)     1.5
Standard Life
Investments
third party
assets under
management                      71.8  12.2       (9.0)   3.2       3.8    78.8
Consolidation
and elimination
adjustments^2,3               (36.4) (6.0)         3.3 (2.7)     (2.5)  (41.6)
Group assets
under
administration                 198.4  21.4      (18.4)   3.0      10.5   211.9

^1  The consolidation adjustment eliminates amounts shown in both Wealth and
Asia and Emerging Markets.

^2 In order to be consistent with the presentation of new business
information, certain products are included in both Standard Life Investments
third party AUM and other segments. Therefore, at a Group level an elimination
adjustment is required to remove any duplication, in addition to other
necessary consolidation adjustments.

^3 Consolidation and elimination adjustments closing AUA includes Standard
Life Investments third party insurance contracts of £30.5bn (31 December 2011:
£26.7bn), UK mutual funds and other of £8.4bn (31 December 2011: £6.8bn) and
Canada mutual funds of £1.7bn (31 December 2011: £1.6bn).

Long-term savings operations net flows

Nine months ended 30 September 2012

                              Gross                 Net  Gross                 Net
                              flows Redemptions   flows  flows Redemptions   flows
                                  9                   9      9                   9
                             months              months months              months
                                 to                  to     to                  to
                                    9 months to                9 months to
                  Fee (F) -  30 Sep              30 Sep 30 Sep              30 Sep
                 Spread/risk   2012 30 Sep 2012    2012   2011 30 Sep 2011    2011
                    (S/R)        £m          £m      £m     £m          £m      £m
UK
Individual
SIPP^1,2              F       2,101     (1,365)     736  2,642     (1,221)   1,421
Other individual
pensions              F         566     (1,758) (1,192)    608     (1,846) (1,238)
Investment bonds      F         115       (887)   (772)    167       (892)   (725)
Mutual funds^1        F       1,154       (336)     818  1,474       (305)   1,169
Legacy life
(excluding
conventional
with profits)         F          83       (256)   (173)     92       (193)   (101)
Wealth^2              F         611        (39)     572    327        (33)     294
UK retail fee
business                      4,630     (4,641)    (11)  5,310     (4,490)     820
Corporate
pensions^1            F       2,263     (1,235)   1,028  3,133     (1,512)   1,621
UK retail and
corporate fee
business                      6,893     (5,876)   1,017  8,443     (6,002)   2,441
Institutional
pensions              F       3,132     (1,512)   1,620  2,463     (1,356)   1,107
Conventional
with profits          F         101     (1,140) (1,039)    134     (1,181) (1,047)
UK total fee
business                     10,126     (8,528)   1,598 11,040     (8,539)   2,501
Annuities            S/R        433       (884)   (451)    340       (851)   (511)
Protection           S/R         51        (39)      12     57        (38)      19
UK long-term
savings                      10,610     (9,451)   1,159 11,437     (9,428)   2,009
Europe
Fee                   F         985       (498)     487  1,074       (470)     604
Spread/risk          S/R         30        (24)       6     13        (25)    (12)
Europe long-term
savings                       1,015       (522)     493  1,087       (495)     592
UK and Europe
long-term
savings                      11,625     (9,973)   1,652 12,524     (9,923)   2,601
Canada
Fee                   F       1,382       (999)     383  1,199       (863)     336
Spread/risk          S/R        146       (316)   (170)    154       (328)   (174)
Group savings
and retirement                1,528     (1,315)     213  1,353     (1,191)     162
Fee                   F         476       (240)     236    394       (249)     145
Spread/risk          S/R        180       (388)   (208)    235       (411)   (176)
Individual
insurance,
savings and
retirement                      656       (628)      28    629       (660)    (31)
Group insurance      S/R        336       (268)      68    330       (267)      63
Mutual funds^1        F         206       (213)     (7)    167       (254)    (87)
Canada long-term
savings                       2,726     (2,424)     302  2,479     (2,372)     107
Asia and
Emerging Markets
Wholly owned
long-term
savings^2             F         606       (177)     429    718       (182)     536
Joint ventures
long-term
savings^3                       311       (116)     195    316       (109)     207
Asia and
Emerging Markets
long-term
savings                         917       (293)     624  1,034       (291)     743
Other
consolidation/eliminations^2   (98)           8    (90)   (71)           5    (66)
Total worldwide long-term
savings                      15,170    (12,682)   2,488 15,966    (12,581)   3,385

^1  Mutual funds net flows are also included within mutual funds net flows
in investment operations. In addition, non-insured SIPP mutual funds net flows
included within individual SIPP and corporate pensions are also included
within UK mutual funds net flows in investment operations.

^2  Wealth was disclosed separately for the first time in the results for
the year ended 31 December 2011. The consolidation adjustment eliminates
amounts also shown within Asia and Emerging Markets. Comparatives have been
restated.

^3  Includes net flows in respect of Standard Life's share of the India and
China JV businesses.

^

Long-term savings operations net flows

Three months ended 30 September 2012

                            Gross                Net  Gross                Net
                            flows Redemptions  flows  flows Redemptions  flows
                                3                  3      3                  3
                           months             months months             months
                               to                 to     to                 to
                                  3 months to               3 months to
                Fee (F) -  30 Sep             30 Sep 30 Sep             30 Sep
               Spread/risk   2012 30 Sep 2012   2012   2011 30 Sep 2011   2011
                  (S/R)        £m          £m     £m     £m          £m     £m
UK
Individual
SIPP^1,2            F         607       (436)    171    801       (378)    423
Other
individual
pensions            F         154       (581)  (427)    160       (567)  (407)
Investment
bonds               F          36       (280)  (244)     51       (294)  (243)
Mutual funds^1      F         376       (111)    265    420        (94)    326
Legacy life
(excluding
conventional
with profits)       F          27        (97)   (70)     29        (65)   (36)
Wealth^2            F         196        (14)    182    112        (11)    101
UK retail fee
business                    1,396     (1,519)  (123)  1,573     (1,409)    164
Corporate
pensions^1          F         680       (415)    265    953       (597)    356
UK retail and
corporate fee
business                    2,076     (1,934)    142  2,526     (2,006)    520
Institutional
pensions            F       1,078       (338)    740    677       (382)    295
Conventional
with profits        F          31       (435)  (404)     42       (508)  (466)
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