Standard Life reports first half and second quarter 2013 results in Canada
Note: All figures are based on IFRS and shown in Canadian dollars. All
comparisons are with the corresponding period in2012, unless otherwise
First half 2013
-- Net income of $48 million
-- Premiums and deposits of $2.9 billion
-- Assets under administration at $45.4 billion
-- Solvency ratio at 263%
MONTREAL, Aug. 8, 2013 /CNW Telbec/ - Standard Life Financial Inc. ("Standard
Life") today reported net income of $48 million for the first six months of
2013 (2012: $78 million). These results reflect interest rate volatility and
equity market returns.
Growth was maintained during the first half, as premiums and deposits rose
5.6% to $2.9billion (2012:$2.8billion). Expansion was driven by our
retail business where demand for segregated funds increased by 8.5% to
$609.5million (2012:$561.9million), and our group savings and retirement
solutions where premiums and deposits increased by 8.6% to $1.6 billion
Assets under administration gained 6.8% to $45.4 billion as at June 30
"Despite a challenging macro-economic environment, we are transforming our
business and investing in retail and group solutions to take advantage of
opportunities in our chosen markets," said Charles Guay, President of Standard
"To maintain momentum in retail markets, we are leveraging the global
expertise and capabilities of our asset manager,
StandardLifeInvestmentsInc., and providing conservative investors
seeking income with alternatives to traditional investments and savings
solutions," Mr. Guay continued. "We recently introduced our Global Absolute
Return Strategies (GARS) Fund for retail investors that follows on the success
of the GARS solution for Canadian group plans introduced in 2011. We have
increased our range of mutual funds which is helping us gain traction in the
investment dealers' network."
"Our investments in workplace retirement solutions focus on the evolving needs
of employers and their employees. We now offer a series of LDI Fixed Income
Funds for small and midsized pension plans to help address the challenges of a
low interest environment. We also added Indexed Target Date Funds (ITDF) and
our Global Absolute Return Strategies (GARS) Fund to our investment platform,"
Mr. Guay said. "Pension in a Box was recently launched as a simple,
comprehensive online solution for small and medium enterprises. We are ready
to offer Pooled Retirement Pension Plans (PRPP) when enabling legislation is
adopted. We continue to implement our customer experience improvement program,
as well, with enhanced reporting tools and web-based transactional
Second quarter 2013
-- Group savings and retirement premiums and deposits decreased by
5.3% to $671 million (2012: $709 million) reflecting the uneven
pattern of this business.
-- Premiums for group insurance and disability management
solutions fell by 1% to $176 million (2012: $178 million).
-- Premiums and deposits for retail products (excluding life
insurance products) increased by 7.4% to $448 million
(2012: $418 million). Demand was particularly strong for
Standard Life's Ideal Segregated Funds, including Signature 2.0
Funds, which grew 10.7% to $293.8 million
(2012: $265.3 million) and grew by 32% to $291.6 million
(2012: $220.8 million) when the discontinued GLWB product is
excluded. In the segregated funds sector, Standard Life remains
the fastest growing company in Canada.
Standard Life Financial's main operating subsidiary, The Standard Life
Assurance Company of Canada, reported a solvency ratio of 263% at the end of
June (December 2012: 277%) following a dividend payment of $250 million. Its
parent company, StandardLifeplc, maintains a robust capital position,
assisted by the de-risking of the business over the past few years.
Standard Life in Canada is a leading provider of long-term savings and
investments solutions. The company will maintain its focus on core business
-- Group savings and 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-GAAP measure. Standard Life
includes in its calculation deposits from segregated and mutual
funds, and premium equivalents of administrative services only
2. As per UK securities regulations, Standard Life plc issues trading
results and interim management statements for the three months
ending March 31, and the nine months ending September 30. It
reports full results for the six months ending June 30, and the 12
months ending December 31. Standard Life Financial Inc. follows
the same schedule.
3. In March 2013, Standard & Poor's reaffirmed the financial strength
ratings of Standard Life's main operating company in Canada at A+.
4. The Q2 2013 results of Standard Life plc (LSE: SL.L) published
earlier today are
About Standard Life
Standard Life Financial Inc. wholly owns The Standard Life Assurance Company
of Canada and Standard Life Mutual Funds Ltd. which provide long-term savings,
investment and insurance solutions to more than 1.4 million Canadians,
including group retirement and insurance plan members.
Standard Life in Canada has been doing business for 180 years and has
approximately 2,000 employees. It is the largest operation outside the United
Kingdom of Standard Life plc, its parent company headquartered in Edinburgh,
Scotland. Standard Life plc has around six million customers and operates in
the United Kingdom, Europe, North America and Asia, and globally with Standard
Life Investments Ltd.
As of June 30, 2013, Standard Life plc had $372.5 billion in assets under
administration, including $45.4 billion in Canada through Standard Life
SOURCE STANDARD LIFE
Geoffrey King 514-499-7999, ext. 8150 email@example.com
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