2010 third quarter trading results - Individual investment funds contribute
to Standard Life's growth in Canada

Note:  All figures are based on Canadian GAAP measures and are shown in Canadian dollars. All comparisons are with the corresponding period of 2009, unless otherwise stated.

MONTREAL, Nov. 3 /CNW Telbec/ - Standard Life Financial Inc. today reported that premiums and deposits in two of its core market segments − retail investment funds and disability management − grew 30% to $300.3 million (2009: $230.6 million). This was offset by slower activity in group defined contribution retirement plans and a marked reduction in sales of term funds due to prevailing interest rate conditions.

Assets under administration were 7% higher at $38.2 billion at the end of the third quarter of 2010 compared to the same period a year ago (2009: $35.7 billion).

"Standard Life successfully took advantage of the opportunities that have arisen since Canadian investors returned to the market after the financial crisis," said Joseph Iannicelli, President. "We are speeding up the development of our wealth management business, with a specific focus on helping people with their retirement planning."  

Demand continued to be strong for Standard Life's Ideal Segregated Funds, with premiums and deposits growing 51% to $147.8 million (2009: $97.6 million), and premiums and deposits in Standard Life mutual funds improved by 15% to $107.6 million (2009: $93.5 million). The rise was unfavourably impacted by term funds and life insurance, with premiums and deposits for individual products 25% lower at $361.2 million (2009: $479.6 million).

Term fund sales in the third quarter of 2010 were lower than a year ago but closer to expected long-term levels. In Q3 2009, volatile stock markets and investors' cautiousness had boosted term fund sales to unusual levels.

Premiums and deposits in group business were 5% higher at $796.1 million (2009: $759.6 million) despite slower market activity. Group insurance premiums rose 8% to $166.2 million (2009: $154.2 million), reflecting Standard Life's expertise in disability prevention and management services to employers. Premiums and deposits in group savings and retirement plans increased 4% to $629.9 million (2009: $605.4 million) and included a large defined contribution plan and a series of new defined benefit mandates secured in the third quarter.

Strong capital position
The Standard Life Assurance Company of Canada reported a solvency ratio of 215% (June 30, 2010: 217%; September 30, 2009: 206%), without any need to access additional capital. The Company continues to maintain a good credit profile, experiencing no losses in its corporate bond and mortgage loan portfolios, despite persistent difficult credit conditions in the wider market.

Outlook
Standard Life Financial maintains its positive outlook for the last quarter of 2010, although the external environment is likely to remain uncertain. Its earnings are expected to benefit from the growth of its assets under administration and rising equity markets. Against this, they will not be materially impacted by lower interest rates due to the nature of the business.

The company expects continued success in its core segments - retail investment funds, group defined contribution retirement plans and disability prevention and management services to employers. However, it does remain cautious about the short-term prospects in the group savings and retirement market.

Standard Life Financial will be adopting a new organizational structure as of November 15. As announced last summer, the company is moving from a structure divided by line of business to one divided by functional expertise. The goal is for the company to be more fit for purpose and flexible in order to identify and capture new business opportunities in a timely fashion.

About Standard Life
Established in 1825, Standard Life is a leading provider of long-term savings and investment solutions to over 6 million customers worldwide. Headquartered in Edinburgh, Scotland, Standard Life has around 10,000 employees across the UK, Canada, Ireland, Germany, Austria, India, USA, Hong Kong and mainland China. It had $311 billion in assets under administration, as of September 30, 2010. 

In 2006, after 80 years as a mutual company, The Standard Life Assurance Company demutualized and Standard Life plc was listed on the London Stock Exchange. Standard Life plc now has approximately 1.5 million shareholders in over 50 countries, including 13,000 in Canada.  

In Canada, Standard Life has been doing business for over 175 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 over 2,000 employees based in Montréal and in offices across Canada, it provides long-term savings, investment and insurance solutions to more than 1.3 million Canadians, including group insurance and retirement plan members. It had $38.2 billion of assets under administration, as at September 30, 2010.

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. 

Note to editors:  

1. You can access Standard Life plc (LSE: SL.L) 2010 Q3 Interim Management Statement published earlier today from the Latest News section of our website, at www.standardlife.ca
   
2. 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 schedule.

For further information:

Contact:
Ann-Marie Gagné
Manager, External Communications and Public Affairs
Standard Life
514-499-7999, ext. 4600
1-877-499-9555, ext. 4600
[email protected]