Note: All figures are based on IFRS and are shown in Canadian dollars. All
comparisons are with the corresponding period of 2013, unless otherwise stated.
-- Premiums and deposits increased by 23% to $1.9 billion
-- Assets under administration grew by 8% to $50 billion
-- Solvency ratio at 228%
MONTREAL, April 30, 2014 /CNW Telbec/ - Standard Life Financial Inc.
("Standard Life") today reported that premiums and deposits increased by 23%
to $1.9 billion (2013: $1.6 billion) in the first quarter of 2014. The
momentum in fee-based business is driven by the strong sales of segregated
funds. The group business also continued to progress. Assets under
administration grew by 8% to $50 billion (2013: $46 billion).
Charles Guay, President of Standard Life, said: "Our performance for the first
three months of the year reflects our constant focus on delivering innovative
products and solutions for our customers. We launched a new online tool that
simplifies reporting and enhances governance of pension plans for employers
and their advisors. We also continued our campaign against financial inertia
with the introduction of the Standard Life Investor Confidence Index, which
showed that investors have greater confidence in their personal finances than
they do in the economy. Moreover, we recently submitted our application to the
AMF to be an authorized administrator of Quebec's VRSP.
Our revenue is steadily increasing with the notable success of our individual
wealth solutions, which include segregated funds and mutual funds. We continue
to strengthen our position in the market by leveraging Standard Life
Investments' leading global investment capabilities through global funds such
as the Global Absolute Return Strategies fund and the US Monthly Income Fund,"
added Mr. Guay.
Standard Life Financial's primary operating subsidiary, The Standard Life
Assurance Company of Canada, reported a solvency ratio of 228% (December 2013:
261%) following the payment of a $345 million dividend in the quarter.
Premiums and deposits for individual wealth solutions increased by 52% to $707
million (2013: $466 million). The growth is mainly due to the success of the
Ideal Segregated Funds. In the first quarter of 2014, sales were up 52% to
$474 million (2013: $312 million), thanks to its flagship Ideal Segregated
Funds Signature 2.0 solution, which continues to innovate by providing
guarantees and features that meet client needs in today's volatile environment.
Mutual fund sales also contributed to the growth of individual wealth
solutions. They gained 17% to $121 million (2013: $104 million), partly
because of the new global funds introduced in 2013, including the US Monthly
Group savings and retirement premiums and deposits rose by 14% to $1 billion
(2013: $892 million). Core defined contribution business was up by 7% to $780
million (2013: $727 million). The increase was driven in part by Standard
Life's new solutions, such as the Financial Education Centre and the Group
Retirement Centre, which assists pension plan members through all their life
Group insurance and disability management premiums and deposits were stable at
(2013: $182 million).
Standard Life is committed to helping Canadians look forward to their
financial future with confidence and optimism. To do so, the company expects
to continue to grow its business by maintaining its focus on the needs of
customers in its core business segments:
-- Group defined contribution retirement plans
-- Health and wellness, including 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
(ASO). They also include those generated by individual life
insurance products sold prior to 2012. The Standard Life Assurance
Company of Canada stopped selling individual life insurance and
critical illness products in 2012, but continues to service the
in-force block of business.
2. Fee-based business includes segregated funds revenues from group
savings and retirement and individual wealth and mutual funds
3. As one of Canada's leading
providers of saving and retirement plans to Canadian employers,
Standard Life offers a suite of solutions that range from low-cost
PRPP and VRSP as well as basic Express and Flexible Pension in a
Box that meet the specific needs of small and medium-sized
businesses, to fully customizable defined contribution plans.
4. On December 3, 2013, the National Assembly of Quebec passed Bill
39 that aims at creating the Quebec pooled registered pension plan
version for Quebec salaried and self-employed workers, which is
the Voluntary Retirement Savings Plan (VRSP).The Voluntary
Retirement Savings Plan Act will come into effect on July 1, 2014.
5. In May 2013, Standard & Poor's reaffirmed the financial strength
ratings of Standard Life's main operating company in Canada at
6. Standard Life plc (LSE: SL.L) published earlier today its 2014 Q1
Trading Results and Interim Management statement, which are
7. 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
About Standard Life
Standard Life provides long-term savings, investment and insurance solutions
to more than 1.4 million Canadians, including group retirement and insurance
plan members. It has 2,000 employees, and the main operating subsidiaries in
Canada are The Standard Life Assurance Company of Canada and Standard Life
Mutual Funds Ltd.
The Canadian operation of Standard Life plc, its parent company, is the
largest outside the United Kingdom. Headquartered in Scotland, Standard Life
plc has around six million customers worldwide and operates in the UK, Canada,
Europe, Asia and the Middle East.
Standard Life plc had $456 billion in assets under administration, including
$50 billion in Canada, as at March 31, 2014.
SOURCE Standard Life
Anne-Julie Gratton 514-499-7999, ext. 8150 Anne-Julie.Gratton@standadlife.ca
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CO: Standard Life
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-0- Apr/30/2014 11:00 GMT
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