| Note: | All figures are based on IFRS and are shown in Canadian dollars. All comparisons are with the corresponding period of 2012, unless otherwise stated. |
- Premiums and deposits increased by 11.6% to $1.6 billion
- Assets under administration grew by 9.7% to $46 billion
- A solvency ratio of 262%
MONTREAL, April 24, 2013 /CNW Telbec/ - Standard Life Financial Inc. ("Standard Life") today reported premiums and deposits rose 11.6% to $1.6 billion (2012: $1.4 billion). The business delivered steady growth in its group savings and retirement business and a slight increase in its group benefit and disability management business. Figures for the retail savings and investment solutions performed in line with last year. Assets under administration were up by 9.7% to $46 billion (Q1 2012: $42 billion); an increase of 2.8% from $45 billion at 2012 year end.
Charles Guay, President of Standard Life, said: "Our quarterly performance shows we continue to build momentum. We are delivering on our value-added solutions to customers and are well positioned to benefit from the growing pension market in Canada. We continue to focus on actions to increase the profitability and lower the level of risk in our business."
Group savings and retirement premiums and deposits rose to $892 million (2012: $730 million), representing an increase of 22.2%. The company also secured interest in its recently launched Pension in a Box: a simple, flexible solution for small and medium sized enterprises.
Group benefits and disability management premiums grew by 3.5% to $182 million (2012: $176 million). Most of the increase was driven by disability management solutions. To meet the growing demand for health risk evaluation tools and workplace health programs, the company also enhanced its life health and wellness offering.
Premiums and deposits for retail savings and retirement solutions were in line with last year at $466 million (2012: $467 million). Standard Life's Ideal Segregated Funds remained popular with investors with premiums and deposits up 6.5% to $316 million (2012: $297 million). Excluding the discontinued Ideal Income Series guaranteed lifetime withdrawal benefit product, segregated funds increased 27.4% to $313 million (2012: $245 million). Mutual fund sales decreased by 14.5% to $104 million (2012: $121 million).
Solid capital position
At March 31, 2013, Standard Life Financial's primary operating subsidiary, The Standard Life Assurance Company of Canada, reported a strong solvency ratio of 262% (December 2012: 277%) following a payment of a dividend in the quarter.
Outlook
The outlook for the Canadian economy remains steady and Standard Life is confident in its growth prospects for the remainder of 2013. It will maintain its focus on its three core business segments:
- Group defined contribution retirement plans
- 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
- 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).
- 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.
- Total premiums and deposits reported 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.
- Standard Life's main operating company in Canada holds a financial strength rating of 'A+' from Standard & Poor's.
- Standard Life plc (LSE: SL.L) published earlier today its 2013 Q1 Trading Results and Interim Management, which are available online.
About Standard Life
Standard Life plc is a leading long-term savings and investment company headquartered in Edinburgh, Scotland. Standard Life has around ten 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 March 31, 2013, Standard Life plc had $360 billion in assets under administration, including $46 billion in Canada through Standard Life Financial.
SOURCE: STANDARD LIFE
Ann-Marie Gagné
514-499-7999, ext. 4600
[email protected]
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