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.
- Net income of $158 million for the first half of 2014, up 229%
- Assets under administration at $52 billion, up 7%
- Premiums and deposits at $1.5 billion, up 18%
- Solvency ratio at 232%
MONTREAL, Aug. 5, 2014 /CNW Telbec/ - Standard Life Financial Inc. ("Standard Life") today reported net income of $158 million for the first half of 2014 (2013: $48 million) and premiums and deposits increased by 18% at $1.5 billion for the second quarter of 2014 (2013: $1.3 billion). The increase is driven by strong sales in the fee-based business. Assets under administration also gained 7% to $52 billion (Dec. 2013: $48 billion) at the end of the second quarter.
Charles Guay, President of Standard Life, said: "Our excellent performance shows that customers and partners believe in our commitment to meet their needs by delivering innovative products and solutions. Canadians are also hearing our message and taking action to fight financial inertia. Our strategy to leverage Standard Life Investments' leading global investment capabilities to meet customer needs has shown great success resulting in a growth of our retail wealth solutions revenue and an increase in the number of advisors recommending our products."
"Our approach to helping customers transition to retirement with Member Financial Services Centre is showing good results. We also continued to develop our strategy to meet the specific needs of small and medium businesses with the launch of our Voluntary Retirement Savings Plan solution in Quebec," added Mr.Guay.
Premiums and deposits for individual wealth solutions increased by 34% to $601 million (2013: $449 million) in the second quarter. The growth was driven by the success of the flagship Ideal Segregated Funds Signature 2.0. In the second quarter, segregated funds sales were up 39% to $403 million (2013: $289 million).
Mutual fund sales are also showing a marked improvement. They increased by 29% to $107 million (2013: $83 million) in the second quarter, partly due to the success of global funds introduced in the last few years such as the Global Absolute Return Strategies Fund. Standard Life Mutual Funds continues its strategy to increase its global funds offering by introducing two new emerging market funds to Canadian investors in the second quarter.
Group savings and retirement premiums and deposits rose by 12% to $752 million (2013: $671 million). Core defined contribution business was up by 14% to $664 million (2013: $583 million). To support the launch of Voluntary Retirement Savings Plan in Quebec, strategic alliances were signed with leading payroll service providers to help business owners implement and administer this program and any similar programs that will be introduced in other provinces.
Group insurance and disability management premiums and deposits gained 3% to $183 million (2013: $176 million), benefiting from Standard Life's improvement of its drug management services for plan sponsors and increased online services capabilities for customers.
Standard Life Financial Inc's primary operating subsidiary, The Standard Life Assurance Company of Canada, reported a strong solvency ratio of 232% at the end of June (Dec. 2013: 261%) following the payment of a $345 million dividend to Standard Life plc.
Outlook
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
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). 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.
- Fee-based business includes segregated funds revenues from group savings and retirement and individual wealth and mutual funds revenues.
- 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.
- 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 came into effect on July 1, 2014.
- In May 2013, Standard & Poor's reaffirmed the financial strength ratings of Standard Life's main operating company in Canada at 'A+.
- Standard Life plc (LSE: SL.L) published earlier today its 2014 half-year results available online.
- 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.
About Standard Life Financial
Canadian-based Standard Life Financial is part of the Standard Life group of companies. It provides long-term savings, investment and insurance solutions to more than 1.4 million Canadians, including group retirement and insurance plan members, managing $52 billion of assets. It has 2,000 employees, and its main operating subsidiaries are The Standard Life Assurance Company of Canada and Standard Life Mutual Funds Ltd.
About Standard Life group
At Standard Life we're in the business of helping build a more prosperous world. We're dedicated to making sure that everything we do helps our customers to save and invest for their future, our industry to improve and our society to progress. These things have been important to us since we were established in Edinburgh in 1825.
Since then, we've also been growing globally. Today, the Standard Life group employs around 8,500 people internationally - through businesses in the UK, Europe, North America and Asia. We're one of the Fortune Global 500's largest companies by revenue. And Standard Life plc is listed on the London Stock Exchange with around 1.3 million individual shareholders across over 50 countries.
Around six million customers worldwide trust us with their financial future - and we're responsible for the administration of over £254 billion (CA $463 billion) of their assets. We support a further 16 million customers through our Chinese and Indian joint venture businesses. The Standard Life Investments brand also offers truly global asset management expertise with strong investment capabilities.
Wherever we operate in the world, we're motivated by a sense of responsibility. It's what helps us to be a sustainable business. We're proud to be listed as a leader for corporate sustainability in our industry in the Dow Jones Sustainability Indices (DJSI World and DJSI Europe).
All figures are as at June 30, 2014.
SOURCE: Standard Life
Anne-Julie Gratton
514-499-7999, ext. 8150
[email protected]
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