Continued growth in core markets boosts Standard Life's 2012 net income in
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 grew by 77% to $431 million
-- Premiums and deposits increased by 10% to $5.9 billion
-- Assets under administration rose by 9% to $45 billion
-- A solvency ratio of 277%
MONTREAL, March 7, 2013 /CNW Telbec/ - Standard Life Financial Inc. ("Standard
Life") reports good earnings performance in 2012 with net income of $431
million (2011: $244 million), a year-on-year increase of 77%. The improvement
was driven by higher fee income and investment yields, as well as previously
announced management actions. Premiums and deposits gained 10% to $5.86
billion (2011: $5.33 billion) in 2012 and 9% to $1.49billion (2011:$1.37
billion) in the fourth quarter.
Charles Guay, President of Standard Life, said: "I'm particularly pleased with
our overall performance this year. Despite a challenging environment, we've
been able to grow our earnings, grow our premiums and deposits, and
substantially lower the level of risk in our business. Our market share
increased in key product lines, especially workplace retirement plans and
segregated funds, as we focused on better understanding our customers'
priorities and offering value-added solutions. I'm confident we're well
positioned to take advantage of the opportunities we see for the future. To do
so, we'll further leverage the expertise of our management team and the
strength of our sales force to sustain sales momentum and deliver consistent
growth in 2013, which marks our 180th anniversary in Canada."
Group savings and retirement premiums and deposits increased 11% to
$3.3billion (2011:$2.9billion). In the core segment of defined
contribution plans, premiums and deposits rose by 8% to $2.4billion
(2011:$2.2billion). This result was achieved through the delivery of
customer solutions to support plan sponsors and help plan members address
their retirement needs.
In2012, premiums and deposits forretail savings and retirement
solutionsrose by 11% to $1.9billion (2011:$1.7billion). Growth was
again driven by strong demand for Standard Life's Ideal Segregated Funds.
Although it suspended sales of the Ideal Income Series guaranteed lifetime
withdrawal benefit product in April 2012, Standard Life continued to enhance
its segregated fund offerings. For the year, it was the fastest growing
company in the sector. Mutual funds advanced by 27% to $438million
(2011:$345million) due to the success of fixed income and yield-oriented
Group insurance and disability management premiums grew by 3% to $719million
(2011: $700million). In the core sector of disability management, premiums
increased by 9% to $210million (2011:$193million). Large mandates
contributed much of the growth in the sector.
Standard Life Financial's primary operating subsidiary, The Standard Life
Assurance Company of Canada, reported a solvency ratio of 277% as at December
31, 2012, compared to 204% a year earlier. The increase reflects both strong
earnings and the issuance of $400 million in subordinated debt in September
2012. The improved earnings in the company's core segments are also
attributable to actions taken by management, including the timely sale of four
commercial properties and the renegotiation of a key reinsurance arrangement.
The company will continue to actively manage its capital position and expects
its solvency ratio to evolve in line with historical levels.
In 2012, Standard Life strengthened its operations and capital position and
laid the foundation for steady growth in the future. The company is ready to
take advantage of future market opportunities driven by evolving demographics,
customer preferences and regulatory change. It will maintain a
customer-centric focus by providing innovative retirement and investment
solutions in its three core business segments:
-- 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
1. 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
2. Total premiums and deposits reported for 2012 and 2011 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.
3. Standard Life's main operating company in Canada holds a financial
strength rating of 'A+' from
Standard & Poor's.
4. Standard Life plc (LSE: SL.L) 2012 preliminary results published
earlier today are
About Standard Life
Standard Life plc is a leading long-term savings and investment company
headquartered in Edinburgh, Scotland. Standard Life has around six million
customers worldwide and operates in the United Kingdom, Europe, North America
and Asia, and globally with Standard Life Investments Ltd.
In Canada, Standard Life has been doing business for 180 years. It operates
under Standard Life Financial Inc., which wholly owns The Standard Life
Assurance Company of Canada and Standard Life Mutual Funds Ltd. It 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 retirement and insurance plan members.
As of December 31, 2012, Standard Life plc had $353 billion in assets under
administration, including $45billion in Canada through Standard Life
Geoffrey King 514-499-7999, ext. 8150 email@example.com
SOURCE: STANDARD LIFE
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