Standard Life reports Q2 premiums and deposits grew by 13%

Standard Life Financial Inc. reported in the quarter ended June 30, 2010, premiums and deposits grew 13% to $1.2 billion, underpinned by successful sales in its core markets. Net income amounted to $23.8 million, increasing year-to-date profit to $77.9 million (2009: $64.9 million).

Standard Life Financial is the Canadian subsidiary of the UK-based long-term savings and investment group Standard Life plc. Standard Life plc published detailed results for the 6 months ended June 30, 2010, and announced a 4.8% increase on the prior year of its interim dividend to $0.07.

“I am pleased with the way Standard Life has adapted to the changing market conditions and delivered growth in Canada for a third consecutive quarter,” said Joseph Iannicelli, President, in a statement. “We are particularly encouraged by our gains in market share and the momentum we’re building in our core segments of retail investment funds, defined contribution retirement plans and disability management. I am confident that we will continue to grow in a profitable manner.”

The increase in premiums and deposits for Standard Life’s retail solutions in Q2 of 2010 was mainly driven by a higher demand for its segregated funds offering. Segregated and mutual fund sales grew by 62% to $27.9 million (2009: $17.2 million), significantly outpacing the market.

Overall, group premiums and deposits were 16% higher at $858.3 million (2009: $737.1 million), despite slower market activity.

Robust capital strength

The Standard Life Assurance Company of Canada maintained its capital and financial strength, reporting a solvency ratio of 217% (December 31, 2009: 213%; June 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.