Standard Life reports record fourth quarter and 2010 annual results in Canada
Standard Life Financial Inc. reported net income of $137 million in the fourth quarter of 2010, up from $55 million a year ago. Earnings were $290 million for the full year, compared to $109 million in 2009. Business growth and improvements in equity and property markets were the main drivers of higher earnings in the fourth quarter and for the full year.
Premiums and deposits increased 12% to $1.3 billion in the fourth quarter (2009: $1.2 billion), and grew 8% to $5 billion for the full year (2009: $4.6 billion). Growth was driven by strong sales of retail investment funds and an increase in new pension clients in 2010, and in the fourth quarter in particular.
Assets under administration grew 8% to $39 billion at the end of 2010 compared to the same period a year ago (2009: $36 billion).
“2010 was a record year for Standard Life in Canada in many ways. Profit is the highest it has ever been for us and we delivered on our goals to grow our business in our three core segments,” said Joseph Iannicelli, President. “I am pleased with the outstanding performance of our group savings and retirement business – especially considering the slower activity across the industry. We were also able to continue expanding our retail investment funds offering and our disability services to employers, and we maintained our strong financial position. During the year we’ve made significant progress in transforming how our company operates. We’ve focused on getting our business in the right shape, putting the building blocks in place to drive profitable growth over the coming years. ”
Premiums and deposits in group businesses were 20% higher to $852 million in the fourth quarter (2009: $711 million) and 11%, to $3.3 billion for the full year (2009: $3 billion), helped by strong sales level in group savings and retirement. Premiums and deposits in group savings and retirement alone were up 24% to $686 million in the fourth quarter (2009: $555 million) and 12% to $2.7 billion for the full year (2009: $2.4 billion), despite a contracting market.
In the retail long-term savings and investment business, demand continued to be strong for Standard Life’s Ideal Segregated Funds, with premiums and deposits growing 24% to $206 million in the fourth quarter (2009: $166 million) and 63% to $703 million in 2010 (2009: $432 million). Premiums and deposits in Standard Life mutual funds also improved by 26% to $502 million in 2010 (2009: $400 million), despite a decrease of 16% to $103 million in the fourth quarter (2009: $123 million).
