Standard Life Financial Inc. today reported net income of $48 million for the first six months of 2013 (2012: $78 million). These results reflect interest rate volatility and equity market returns.
Growth was maintained during the first half, as premiums and deposits rose 5.6% to $2.9 billion (2012: $2.8 billion). Expansion was driven by our retail business where demand for segregated funds increased by 8.5% to $609.5 million (2012: $561.9 million), and our group savings and retirement solutions where premiums and deposits increased by 8.6% to$1.6 billion (2012: $1.4 billion).
Read: Standard Life changes fund lineup
Assets under administration gained 6.8% to $45.4 billion as at June 30 (2012: $42.5 billion).
Second quarter 2013
- Group savings and retirement premiums and deposits decreased by 5.3% to $671 million (2012: $709 million) reflecting the uneven pattern of this business.
- Premiums for group insurance and disability management solutions fell by 1% to $176 million (2012: $178 million).
- Premiums and deposits for retail products (excluding life insurance products) increased by 7.4% to $448 million(2012: $418 million). Demand was particularly strong for Standard Life’s Ideal Segregated Funds, including Signature 2.0 Funds, which grew 10.7% to $293.8 million (2012: $265.3 million) and grew by 32% to $291.6 million (2012: $220.8 million) when the discontinued GLWB product is excluded. In the segregated funds sector, Standard Life remains the fastest growing company in Canada.
Capital position
Standard Life Financial’s main operating subsidiary, The Standard Life Assurance Company of Canada, reported a solvency ratio of 263% at the end of June (December 2012: 277%) following a dividend payment of $250 million. Its parent company, Standard Life plc, maintains a robust capital position, assisted by the de-risking of the business over the past few years.
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