Standard Life Financial reports full-year 2013 results

Note:  All figures are based on IFRS and are shown in Canadian dollars. Readers are referred to the end of this release for non-IFRS measures. All comparisons are with the corresponding period of 2012, unless otherwise stated.

• Underlying operating profit before tax up 71% to $295 million
• Net income of $236 million, compared to $428 million in 2012, reflecting lower benefits of one-off items
• Fee-based revenues increased by 15% to $314 million
• Premiums and deposits up 6% to $6.2 billion
• Total assets under administration up 7% to $48 billion
• Fee-based assets under administration up 18%
• Strong solvency ratio of 261%

MONTREAL, Feb. 27, 2014 /CNW Telbec/ - Standard Life Financial Inc. ("Standard Life") reported net income of $236 million in 2013 (2012: $428 million), with underlying operating profit before tax, which excludes economic movements and the benefits of one-off items, increasing to $295 million (2012: $173 million), reflecting growing momentum in fee-based business. Premiums and deposits grew to $6.2 billion (2012: $5.9 billion), including a 21% increase to $1.9 billion in the fourth quarter (2012: $1.5 billion).

Charles Guay, President of Standard Life said: "Standard Life has remained focused on improving the underlying operating performance of its business in Canada. We have increased premiums and deposits with the notable success of our retail segregated funds offering."

"We keep on delivering new and innovative solutions for our customers. During the year we introduced our Group Retirement Centre and our Financial Education Centre, designed to assist pension plan members in addressing their financial and investment needs.

"We also continue to leverage Standard Life Investments' leading global investment capabilities. Last year we added several new funds to our offering, increasing our presence with advisors and investors.

"We look forward to further growing our fee-based business by consistently delivering value to our customers."

Overall sales from individual wealth increased by 19% to $2.0 billion in 2013 (2012: $1.7 billion). The growth was driven by strong sales momentum in retail segregated funds, which grew 26.8% to $1.3 billion in 2013 (2012: $1.1 billion).

Overall premiums and deposits from the group savings and retirement business increased by 1.2% to $3.29 billion (2012: $3.26 billion). Core defined contribution business increased by 4% to $2.49 billion (2012: $2.40 billion).

Group insurance and disability management activities were in line with prior year at $706 million (2012: $719 million).

Total assets under administration increased by 7.2% during the year to $48 billion (2012: $45 billion), driven by an 18% growth in fee-based assets under administration.

Standard Life's primary operating subsidiary, The Standard Life Assurance Company of Canada, reported a strong solvency ratio of 261% as at December 31, 2013 (2012: 277%).

2014 Outlook

In 2014, the company expects to continue to grow its fee-based business by continuing to focus on the needs of customers in its three core market segments:

• Group defined contribution retirement plans
  
  
• Health and wellness, including disability prevention and management services for employers
  
  
• Retail investment funds

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.

Notes to Editors

1. Underlying operating profit before tax is a non-IFRS measure. This measure is used to better understand the long-term earnings capacity of the business. Underlying operating profit excludes the impact of macro-economic factors as well as a number of other items that are considered material and exceptional in nature.
2. 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).
3. Total premiums and deposits reported for 2013 and 2012 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.
4. Fee-based business includes segregated funds revenues from group savings and retirement and individual wealth and mutual funds revenues.
5. 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 twelve months ending December 31. Standard Life Financial Inc. follows the same schedule.
6. In May 2013, Standard & Poor's reaffirmed the financial strength ratings of Standard Life's main operating company in Canada at 'A+.
7. Standard Life plc (LSE: SL.L) 2013 preliminary results published earlier today are available online.

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 its primary operating subsidiaries are The Standard Life Assurance Company of Canada and Standard Life Mutual Funds Ltd.

The Canadian operation of Standard Life plc, its ultimate 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 $429.7 billion in assets under administration, including $48 billion in Canada at December 31, 2013.

SOURCE: Standard Life

Anne-Julie Gratton
514-499-7999 or 1-877-499-9555 ext. 8150
[email protected]