Final Results - Part 5 of 5

RNS Number : 4305Z

Standard Life plc

07 March 2013

 



Standard Life plc

Preliminary Results 2012

Part 5 of 5

Section 4 - Supplementary information

4.1 EEV and EEV operating profit

	Covered
	UK and Europe	Canada	Asia and Emerging Markets	Total non-covered		Group elimination		Total		Pence per share1
2012	£m	£m	£m	£m		£m		£m		p
Opening EEV	3,733	1,712	342	1,552		89		7,428		316
New business contribution	261	45	33	-		-		339
Contribution from in-force business	538	272	(19)	-		-		791
Non-covered business	-	-	-	61		(75)		(14)
EEV operating profit/(loss) before tax	799	317	14	61		(75)		1,116
Tax on EEV operating profit	(187)	(76)	(1)	6		18		(240)
EEV operating profit/(loss) after tax	612	241	13	67		(57)		876		37
EEV non-operating profit/(loss) after tax	19	185	21	(17)		(32)		176		7
EEV profit/(loss) after tax	631	426	34	50		(89)		1,052
Non-trading adjustments	(355)	175	15	(177)		-		(342)
Closing EEV	4,009	2,313	391	1,425		-		8,138		343

¹      2011 restated for revision to number of shares. Refer to the IFRS financial information Note 2.5 - Earnings per share.

	Covered
	UK and Europe	Canada	Asia and Emerging Markets	Total non-covered		Group elimination	Total		Pence per share1
2011	£m	£m	£m	£m		£m	£m		p
Opening EEV	3,995	1,758	318	1,205		45	7,321		322
New business contribution	225	73	37	-		-	335
Contribution from in-force business	325	251	(22)	-		-	554
Non-covered business	-	-	-	100		-	100
EEV operating profit before tax	550	324	15	100		-	989
Tax on EEV operating profit	(139)	(80)	(2)	(44)		-	(265)
EEV operating profit after tax	411	244	13	56		-	724		31
EEV non-operating (loss)/profit after tax	(257)	(108)	(12)	(22)		44	(355)		(15)
EEV profit after tax	154	136	1	34		44	369
Non-trading adjustments	(416)	(182)	23	313		-	(262)
Closing EEV	3,733	1,712	342	1,552		89	7,428		316

¹      2011 restated for revision to number of shares. Refer to the IFRS financial information Note 2.5 - Earnings per share.

4.2 Reconciliation of operating profit to EEV operating capital and cash generation

	UK and Europe	Standard Life Investments	Canada	Asia and Emerging Markets	Other	Total
2012	£m	£m	£m	£m	£m	£m
Operating profit/(loss) before tax	419	145	355	5	(24)	900
Tax on operating profit	(17)	(38)	(79)	3	(2)	(133)
Operating profit/(loss) after tax1	402	107	276	8	(26)	767
Impact of different treatment of assets and actuarial reserves	(17)	-	-	(2)	-	(19)
DAC and DIR2, intangibles, tax and other3	11	-	59	(27)	(57)	(14)
Look through to investment management	60	(62)	2	-	-	-
EEV operating capital and cash generation	456	45	337	(21)	(83)	734
EEV operating profit after tax - PVIF	218	-	(100)	24	-	142
EEV operating profit/(loss) after tax	674	45	237	3	(83)	876

¹    Group operating profit after tax consists of: Group operating profit before tax of £900m, tax on operating profit of (£124m) and share of joint ventures' and associates' tax expense of (£9m).

²    Deferred acquisition costs (DAC) and deferred income reserve (DIR).

³    The £59m reconciling item in Canada includes £57m relating to the elimination of the consolidation adjustment for different accounting bases, following the redemption of inter-Group subordinated liabilities. There is an offsetting adjustment in other.

	UK and Europe	Standard Life Investments	Canada	Asia and Emerging Markets	Other	Total
2011	£m	£m	£m	£m	£m	£m
Operating profit/(loss) before tax	266	125	187	(6)	(28)	544
Tax on operating profit	(26)	(30)	(31)	2	(2)	(87)
Operating profit/(loss) after tax	240	95	156	(4)	(30)	457
Impact of different treatment of assets and actuarial reserves	2	-	(11)	2	-	(7)
DAC and DIR1, intangibles, tax and other	(2)	-	11	(21)	-	(12)
Look through to investment management	39	(41)	2	-	-	-
EEV operating capital and cash generation	279	54	158	(23)	(30)	438
EEV operating profit after tax - PVIF	174	-	82	30	-	286
EEV operating profit/(loss) after tax	453	54	240	7	(30)	724

¹    Deferred acquisition costs (DAC) and deferred income reserve (DIR).

4.3 Group EEV capital and cash generation

	Free surplus movement	Required capital movement	EEV net worth movement
2012	£m	£m	£m
Capital and cash generation from existing business	636	(23)	613
New business strain	(325)	109	(216)
Covered business capital and cash generation from new business and expected return	311	86	397
Covered business development expenses	(49)	-	(49)
Core	262	86	348
Efficiency	(2)	(1)	(3)
Back book management	452	(63)	389
EEV operating capital and cash generation	712	22	734
Capital and cash generation from non-operating items	(369)	57	(312)
Total EEV capital and cash generation	343	79	422

All figures are net of tax. Net income directly recognised in the EEV statement of financial position, including exchange differences and distributions to and injections from shareholders, is not included as these are not trading related cash flows.

	Free surplus movement	Required capital movement	EEV net worth movement
2011	£m	£m	£m
Capital and cash generation from existing business	688	(45)	643
New business strain	(290)	64	(226)
Covered business capital and cash generation from new business and expected return	398	19	417
Covered business development expenses	(50)	-	(50)
Non-covered business core capital and cash generation	(5)	-	(5)
Core	343	19	362
Efficiency	(6)	-	(6)
Back book management	78	4	82
EEV operating capital and cash generation	415	23	438
Capital and cash generation from non-operating items	(372)	258	(114)
Total EEV capital and cash generation	43	281	324

All figures are net of tax. Net income directly recognised in the EEV statement of financial position, including exchange differences and distributions to and injections from shareholders, is not included as these are not trading related cash flows.

4.4 Reconciliation of key capital measures

	2012	2011	2010
	£bn	£bn	£bn
IGD regulatory capital resources	8.0	7.3	7.4
Capital in long-term business funds	(2.8)	(3.1)	(2.6)
External subordinated liabilities	(1.9)	(1.1)	(1.8)
Valuation adjustments for IFRS	1.1	0.9	0.9
IFRS equity attributable to ordinary equity holders of Standard Life plc	4.4	4.0	3.9
Valuation adjustments for EEV	(0.7)	(0.4)	(0.4)
EEV net worth	3.7	3.6	3.5
Cost of required capital	(0.7)	(0.6)	(0.4)
PVIF and TVOG	5.1	4.4	4.2
Closing EEV	8.1	7.4	7.3

4.5 Group assets under administration and net flows

Group assets under administration (AUA) represent the IFRS gross assets of the Group adjusted to include third party AUA, which are not included in the statement of financial position. In addition, certain assets are excluded, for example deferred acquisition costs, intangibles and reinsurance assets.

Group assets under administration (summary)

12 months ended 31 December 2012

	Opening AUA at 1 Jan 2012	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 31 Dec 2012
	£bn	£bn	£bn	£bn	£bn	£bn
Fee business
UK retail new	23.7	5.2	(2.4)	2.8	2.2	28.7
UK retail old	32.1	0.8	(3.9)	(3.1)	2.7	31.7
UK retail	55.8	6.0	(6.3)	(0.3)	4.9	60.4
Corporate	22.0	3.0	(1.8)	1.2	1.3	24.5
UK retail and corporate	77.8	9.0	(8.1)	0.9	6.2	84.9
Institutional pensions	17.5	4.2	(2.4)	1.8	2.0	21.3
Conventional with profits	5.3	0.1	(1.5)	(1.4)	0.2	4.1
UK total	100.6	13.3	(12.0)	1.3	8.4	110.3
Europe	9.3	1.5	(0.8)	0.7	0.8	10.8
Standard Life Investments third party	71.8	17.6	(11.5)	6.1	5.1	83.0
Canada	14.3	2.8	(2.0)	0.8	0.8	15.9
Asia and Emerging Markets (wholly owned)	2.5	0.8	(0.2)	0.6	0.2	3.3
Consolidation/eliminations1	(35.7)	(8.4)	4.6	(3.8)	(3.1)	(42.6)
Total fee business	162.8	27.6	(21.9)	5.7	12.2	180.7
Spread/risk
UK	14.4	0.7	(1.2)	(0.5)	1.4	15.3
Europe	0.5	-	-	-	-	0.5
Canada	10.3	0.9	(1.3)	(0.4)	-	9.9
Total spread/risk business	25.2	1.6	(2.5)	(0.9)	1.4	25.7
Assets not backing products in long-term savings business	8.5	-	-	-	-	8.5
Joint ventures	1.2	0.4	(0.2)	0.2	0.1	1.5
Other corporate assets	1.6	-	-	-	0.4	2.0
Other consolidation/eliminations1	(0.9)	-	-	-	0.6	(0.3)
Group assets under administration	198.4	29.6	(24.6)	5.0	14.7	218.1
Group assets under administration managed by:
Standard Life Group entities	163.3					176.0
Other third party managers	35.1					42.1
Total	198.4					218.1

¹    In order to be consistent with the presentation of new business information, certain products are included in both life and pensions AUA and investment operations. Therefore, at a Group level an elimination adjustment is required to remove any duplication, in addition to other necessary consolidation adjustments.

Group assets under administration (summary)

12 months ended 31 December 2011

	Opening AUA at 1 Jan 2011	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 31 Dec 2011
	£bn	£bn	£bn	£bn	£bn	£bn
Fee business
UK retail new	21.0	5.7	(2.0)	3.7	(1.0)	23.7
UK retail old	34.5	0.9	(3.7)	(2.8)	0.4	32.1
UK retail	55.5	6.6	(5.7)	0.9	(0.6)	55.8
Corporate	21.0	3.9	(1.9)	2.0	(1.0)	22.0
UK retail and corporate	76.5	10.5	(7.6)	2.9	(1.6)	77.8
Institutional pensions	15.8	3.2	(1.8)	1.4	0.3	17.5
Conventional with profits	6.6	0.2	(1.7)	(1.5)	0.2	5.3
UK total	98.9	13.9	(11.1)	2.8	(1.1)	100.6
Europe	8.7	1.5	(0.8)	0.7	(0.1)	9.3
Standard Life Investments third party	71.6	12.9	(8.6)	4.3	(4.1)	71.8
Canada	14.0	2.3	(1.7)	0.6	(0.3)	14.3
Asia and Emerging Markets (wholly owned)	1.9	1.0	(0.3)	0.7	(0.1)	2.5
Consolidation/eliminations1	(32.2)	(7.7)	4.7	(3.0)	(0.5)	(35.7)
Total fee business	162.9	23.9	(17.8)	6.1	(6.2)	162.8
Spread/risk
UK	13.4	0.5	(1.2)	(0.7)	1.7	14.4
Europe	0.5	-	-	-	-	0.5
Canada	10.1	1.1	(1.4)	(0.3)	0.5	10.3
Total spread/risk business	24.0	1.6	(2.6)	(1.0)	2.2	25.2
Assets not backing products in long-term savings business	8.1	-	-	-	0.4	8.5
Joint ventures	1.2	0.4	(0.1)	0.3	(0.3)	1.2
Other corporate assets	1.4	-	-	-	0.2	1.6
Other consolidation/eliminations1	(0.8)	-	-	-	(0.1)	(0.9)
Group assets under administration	196.8	25.9	(20.5)	5.4	(3.8)	198.4
Group assets under administration managed by:
Standard Life Group entities	164.0					163.3
Other third party managers	32.8					35.1
Total	196.8					198.4

¹   In order to be consistent with the presentation of new business information, certain products are included in both life and pensions AUA and investment operations. Therefore, at a Group level an elimination adjustment is required to remove any duplication, in addition to other necessary consolidation adjustments.

4.5 Group assets under administration and net flows continued

Group assets under administration

12 months ended 31 December 2012

	Fee (F) - Spread/risk (S/R)	Opening AUA at 1 Jan 2012	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 31 Dec 2012
		£bn	£bn	£bn	£bn	£bn	£bn
UK
Individual SIPP	F	16.4	2.7	(1.9)	0.8	1.6	18.8
Other individual pensions	F	22.6	0.7	(2.5)	(1.8)	2.1	22.9
Investment bonds	F	7.6	0.2	(1.1)	(0.9)	0.5	7.2
Mutual funds	F	6.1	1.5	(0.4)	1.1	0.4	7.6
Legacy life (excluding conventional with profits)	F	2.2	0.1	(0.3)	(0.2)	0.1	2.1
Wealth	F	0.9	0.8	(0.1)	0.7	0.2	1.8
UK retail fee business		55.8	6.0	(6.3)	(0.3)	4.9	60.4
Corporate pensions	F	22.0	3.0	(1.8)	1.2	1.3	24.5
UK retail and corporate fee business		77.8	9.0	(8.1)	0.9	6.2	84.9
Institutional pensions	F	17.5	4.2	(2.4)	1.8	2.0	21.3
Conventional with profits	F	5.3	0.1	(1.5)	(1.4)	0.2	4.1
UK total fee business		100.6	13.3	(12.0)	1.3	8.4	110.3
Annuities	S/R	14.4	0.7	(1.2)	(0.5)	1.4	15.3
Assets not backing products		7.0	-	-	-	(0.5)	6.5
UK long-term savings		122.0	14.0	(13.2)	0.8	9.3	132.1
Europe
Fee	F	9.3	1.5	(0.8)	0.7	0.8	10.8
Spread/risk	S/R	0.5	-	-	-	-	0.5
Europe long-term savings		9.8	1.5	(0.8)	0.7	0.8	11.3
UK and Europe long-term savings		131.8	15.5	(14.0)	1.5	10.1	143.4
Canada
Fee	F	10.9	1.9	(1.4)	0.5	0.6	12.0
Spread/risk	S/R	3.8	0.2	(0.4)	(0.2)	-	3.6
Group savings and retirement		14.7	2.1	(1.8)	0.3	0.6	15.6
Fee	F	1.9	0.6	(0.3)	0.3	0.1	2.3
Spread/risk	S/R	5.9	0.2	(0.5)	(0.3)	0.1	5.7
Individual insurance, savings and retirement		7.8	0.8	(0.8)	-	0.2	8.0
Group insurance	S/R	0.6	0.5	(0.4)	0.1	(0.1)	0.6
Mutual funds	F	1.5	0.3	(0.3)	-	0.1	1.6
Assets not backing products		1.5	-	-	-	0.5	2.0
Canada long-term savings		26.1	3.7	(3.3)	0.4	1.3	27.8
Asia and Emerging Markets
Wholly owned long-term savings	F	2.5	0.8	(0.2)	0.6	0.2	3.3
Joint ventures long-term savings		1.2	0.4	(0.2)	0.2	0.1	1.5
Asia and Emerging Markets long-term savings		3.7	1.2	(0.4)	0.8	0.3	4.8
Consolidation and elimination adjustments1		(0.2)	(0.1)	-	(0.1)	-	(0.3)
Total worldwide long-term savings		161.4	20.3	(17.7)	2.6	11.7	175.7
Other corporate assets		1.6	-	-	-	0.4	2.0
Standard Life Investments third party assets under management		71.8	17.6	(11.5)	6.1	5.1	83.0
Consolidation and elimination adjustments2,3		(36.4)	(8.3)	4.6	(3.7)	(2.5)	(42.6)
Group assets under administration		198.4	29.6	(24.6)	5.0	14.7	218.1

¹      The consolidation adjustment eliminates amounts shown in both Wealth and Asia and Emerging Markets.

²    In order to be consistent with the presentation of new business information, certain products are included in both life and pensions AUA and investment operations. Therefore, at a Group level an elimination adjustment is required to remove any duplication, in addition to other necessary consolidation adjustments.

³      Consolidation and elimination adjustments closing AUA includes Standard Life Investments third party insurance contracts of £31.4bn (31 December 2011: £26.7bn), UK mutual funds and other £8.9bn (31 December 2011: £6.8bn) and Canada mutual funds of £1.6bn (31 December 2011: £1.6bn).

Long-term savings operations net flows

12 months ended 31 December 2012

		Gross flows	Redemptions	Net flows	Gross flows	Redemptions	Net flows
	Fee (F) - Spread/risk (S/R)	12 months to 31 Dec 2012	12 months to 31 Dec 2012	12 months to 31 Dec 2012	12 months to 31 Dec 2011	12 months to 31 Dec 2011	12 months to 31 Dec 2011
		£m	£m	£m	£m	£m	£m
UK
Individual SIPP1	F	2,723	(1,872)	851	3,329	(1,596)	1,733
Other individual pensions	F	699	(2,464)	(1,765)	748	(2,371)	(1,623)
Investment bonds	F	158	(1,154)	(996)	203	(1,183)	(980)
Mutual funds1	F	1,552	(456)	1,096	1,790	(406)	1,384
Legacy life (excluding conventional with profits)	F	108	(337)	(229)	121	(255)	(134)
Wealth	F	801	(62)	739	453	(47)	406
UK retail fee business		6,041	(6,345)	(304)	6,644	(5,858)	786
Corporate pensions1	F	2,971	(1,747)	1,224	3,904	(1,880)	2,024
UK retail and corporate fee business		9,012	(8,092)	920	10,548	(7,738)	2,810
Institutional pensions	F	4,199	(2,367)	1,832	3,209	(1,795)	1,414
Conventional with profits	F	129	(1,576)	(1,447)	173	(1,621)	(1,448)
UK total fee business		13,340	(12,035)	1,305	13,930	(11,154)	2,776
Annuities	S/R	632	(1,179)	(547)	459	(1,134)	(675)
Protection	S/R	67	(50)	17	76	(52)	24
UK long-term savings		14,039	(13,264)	775	14,465	(12,340)	2,125
Europe
Fee	F	1,428	(727)	701	1,496	(728)	768
Spread/risk	S/R	41	(32)	9	20	(30)	(10)
Europe long-term savings		1,469	(759)	710	1,516	(758)	758
UK and Europe long-term savings		15,508	(14,023)	1,485	15,981	(13,098)	2,883
Canada
Fee	F	1,852	(1,352)	500	1,626	(1,096)	530
Spread/risk	S/R	197	(421)	(224)	229	(435)	(206)
Group savings and retirement		2,049	(1,773)	276	1,855	(1,531)	324
Fee	F	668	(337)	331	540	(341)	199
Spread/risk	S/R	240	(516)	(276)	312	(557)	(245)
Individual insurance, savings and retirement		908	(853)	55	852	(898)	(46)
Group insurance	S/R	452	(360)	92	442	(356)	86
Mutual funds1	F	275	(291)	(16)	218	(329)	(111)
Canada long-term savings		3,684	(3,277)	407	3,367	(3,114)	253
Asia and Emerging Markets
Wholly owned long-term savings	F	844	(239)	605	970	(280)	690
Joint ventures long-term savings2		410	(161)	249	415	(140)	275
Asia and Emerging Markets long-term savings		1,254	(400)	854	1,385	(420)	965
Other consolidation/eliminations3		(122)	9	(113)	(85)	8	(77)
Total worldwide long-term savings		20,324	(17,691)	2,633	20,648	(16,624)	4,024

¹    Mutual funds net flows are also included within mutual funds net flows in investment operations. In addition, non-insured SIPP mutual funds net flows included within individual SIPP and corporate pensions are also included within UK mutual funds net flows in investment operations.

²    Includes net flows in respect of Standard Life's share of the India and China JV businesses.

³    The consolidation adjustment eliminates amounts shown in both Wealth and Asia and Emerging Markets.

4.5 Group assets under administration and net flows continued 

Long-term savings operations net flows

Three months ended 31 December 2012

		Gross flows	Redemptions	Net flows	Gross flows	Redemptions	Net flows
	Fee (F) - Spread/risk (S/R)	3 months to 31 Dec 2012	3 months to 31 Dec 2012	3 months to 31 Dec 2012	3 months to 31 Dec 2011	3 months to 31 Dec 2011	3 months to 31 Dec 2011
		£m	£m	£m	£m	£m	£m
UK
Individual SIPP1	F	622	(507)	115	687	(375)	312
Other individual pensions	F	133	(706)	(573)	140	(525)	(385)
Investment bonds	F	43	(267)	(224)	36	(291)	(255)
Mutual funds1	F	398	(120)	278	316	(101)	215
Legacy life (excluding conventional with profits)	F	25	(81)	(56)	29	(62)	(33)
Wealth	F	190	(23)	167	126	(14)	112
UK retail fee business		1,411	(1,704)	(293)	1,334	(1,368)	(34)
Corporate pensions1	F	708	(512)	196	771	(368)	403
UK retail and corporate fee business		2,119	(2,216)	(97)	2,105	(1,736)	369
Institutional pensions	F	1,067	(855)	212	746	(439)	307
Conventional with profits	F	28	(436)	(408)	39	(440)	(401)
UK total fee business		3,214	(3,507)	(293)	2,890	(2,615)	275
Annuities	S/R	199	(295)	(96)	119	(283)	(164)
Protection	S/R	16	(11)	5	19	(14)	5
UK long-term savings		3,429	(3,813)	(384)	3,028	(2,912)	116
Europe
Fee	F	443	(229)	214	422	(258)	164
Spread/risk	S/R	11	(8)	3	7	(5)	2
Europe long-term savings		454	(237)	217	429	(263)	166
UK and Europe long-term savings		3,883	(4,050)	(167)	3,457	(3,175)	282
Canada
Fee	F	470	(353)	117	427	(233)	194
Spread/risk	S/R	51	(105)	(54)	75	(107)	(32)
Group savings and retirement		521	(458)	63	502	(340)	162
Fee	F	192	(97)	95	146	(92)	54
Spread/risk	S/R	60	(128)	(68)	77	(146)	(69)
Individual insurance, savings and retirement		252	(225)	27	223	(238)	(15)
Group insurance	S/R	116	(92)	24	112	(89)	23
Mutual funds1	F	69	(78)	(9)	51	(75)	(24)
Canada long-term savings		958	(853)	105	888	(742)	146
Asia and Emerging Markets
Wholly owned long-term savings	F	238	(62)	176	252	(98)	154
Joint ventures long-term savings2		99	(45)	54	99	(31)	68
Asia and Emerging Markets long-term savings		337	(107)	230	351	(129)	222
Other consolidation/eliminations3		(24)	1	(23)	(14)	3	(11)
Total worldwide long-term savings		5,154	(5,009)	145	4,682	(4,043)	639

¹    Mutual funds net flows are also included within mutual funds net flows in investment operations. In addition, non-insured SIPP mutual funds net flows included within individual SIPP and corporate pensions are also included within UK mutual funds net flows in investment operations.

²    Includes net flows in respect of Standard Life's share of the India and China JV businesses.   

³    The consolidation adjustment eliminates amounts shown in both Wealth and Asia and Emerging Markets.

Long-term savings operations net flows

15 months ended 31 December 2012

		Net flows
	Fee (F) - Spread/risk (S/R)	3 months to 31 Dec 2012	3 months to 30 Sep 2012	3 months to 30 Jun 2012	3 months to 31 Mar 2012	3 months to 31 Dec 2011
		£m	£m	£m	£m	£m
UK
Individual SIPP	F	115	171	198	367	312
Other individual pensions	F	(573)	(427)	(362)	(403)	(385)
Investment bonds	F	(224)	(244)	(247)	(281)	(255)
Mutual funds	F	278	265	271	282	215
Legacy life (excluding conventional with profits)	F	(56)	(70)	(57)	(46)	(33)
Wealth	F	167	182	205	185	112
UK retail fee business		(293)	(123)	8	104	(34)
Corporate pensions	F	196	265	392	371	403
UK retail and corporate fee business		(97)	142	400	475	369
Institutional pensions	F	212	740	141	739	307
Conventional with profits	F	(408)	(404)	(354)	(281)	(401)
UK total fee business		(293)	478	187	933	275
Annuities	S/R	(96)	(147)	(154)	(150)	(164)
Protection	S/R	5	3	7	2	5
UK long-term savings		(384)	334	40	785	116
Europe
Fee	F	214	154	151	182	166
Spread/risk	S/R	3	-	(2)	8	-
Europe long-term savings		217	154	149	190	166
UK and Europe long-term savings		(167)	488	189	975	282
Canada
Fee	F	117	292	102	(11)	194
Spread/risk	S/R	(54)	(57)	(52)	(61)	(32)
Group savings and retirement		63	235	50	(72)	162
Fee	F	95	52	88	96	54
Spread/risk	S/R	(68)	(65)	(68)	(75)	(69)
Individual insurance, savings and retirement		27	(13)	20	21	(15)
Group insurance	S/R	24	24	23	21	23
Mutual funds	F	(9)	-	(2)	(5)	(24)
Canada long-term savings		105	246	91	(35)	146
Asia and Emerging Markets
Wholly owned long-term savings	F	176	151	155	123	154
Joint ventures long-term savings1		54	55	37	103	68
Asia and Emerging Markets long-term savings		230	206	192	226	222
Other consolidation/eliminations2		(23)	(26)	(20)	(44)	(11)
Total worldwide long-term savings		145	914	452	1,122	639

¹    Includes net flows in respect of Standard Life's share of the India and China JV businesses.

²    The consolidation adjustment eliminates amounts shown in both Wealth and Asia and Emerging Markets.

4.5 Group assets under administration and net flows continued 

Investment operations

12 months ended 31 December 2012

		Opening AUM at 1 Jan 2012	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 31 Dec 2012
		£m	£m	£m	£m	£m	£m	£m
UK	Mutual funds1	10,810	5,029	(2,528)	2,501	980	3,481	14,291
	Private equity	3,310	117	(142)	(25)	(147)	(172)	3,138
	Segregated funds	13,248	388	(2,773)	(2,385)	1,520	(865)	12,383
	Pooled property funds	1,953	189	(5)	184	(121)	63	2,016
Total UK		29,321	5,723	(5,448)	275	2,232	2,507	31,828
Europe		5,316	2,950	(852)	2,098	547	2,645	7,961
Total UK and Europe		34,637	8,673	(6,300)	2,373	2,779	5,152	39,789
Canada	Mutual funds1	1,647	283	(343)	(60)	52	(8)	1,639
	Separate mandates	3,815	235	(1,216)	(981)	13	(968)	2,847
Total Canada		5,462	518	(1,559)	(1,041)	65	(976)	4,486
Asia and Emerging Markets
	India2	2,711	454	-	454	141	595	3,306
	Other	1,009	2,030	(310)	1,720	106	1,826	2,835
Total Asia and Emerging Markets		3,720	2,484	(310)	2,174	247	2,421	6,141
Total worldwide investment products excluding money market and related funds		43,819	11,675	(8,169)	3,506	3,091	6,597	50,416
	UK money market funds3	52	-	-	-	(52)	(52)	-
	India cash funds3	1,222	(101)	-	(101)	75	(26)	1,196
Total worldwide investment products		45,093	11,574	(8,169)	3,405	3,114	6,519	51,612

Total third party assets under management comprise the investment business noted above together with third party insurance contracts. New business relating to third party insurance contracts is disclosed as insurance business for reporting purposes. An analysis of total third party AUM is shown below.

	Opening AUM at 1 Jan 2012	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 31 Dec 2012
	£m	£m	£m	£m	£m	£m	£m
Third party investment products	45,093	11,574	(8,169)	3,405	3,114	6,519	51,612
Third party insurance contracts (new business classified as insurance products)	26,684	5,961	(3,308)	2,653	2,071	4,724	31,408
Total third party assets under management	71,777	17,535	(11,477)	6,058	5,185	11,243	83,020
UK money market funds and India cash funds3	1,274	(101)	-	(101)	23	(78)	1,196
Total third party assets under management excluding money market and related funds	70,503	17,636	(11,477)	6,159	5,162	11,321	81,824
Standard Life Investments - total assets under management	154,876						167,723

¹      Included within mutual funds net flows are amounts also included within UK and Canada mutual funds, UK individual SIPP and UK corporate pensions long-term savings operations net flows and new business.

²    Asia and Emerging Markets gross inflows include India where, due to the nature of the Indian investment sales market, the new business is shown as the net of sales less redemptions. India cash funds are included as money market and related funds in the table.

³    Due to the nature of the UK money market funds and India cash funds, the flows are calculated using average net client balances. Other movements are derived as the difference between these average net inflows and the movement in the opening and closing AUM.

⁴      Funds denominated in foreign currencies have been translated to Sterling using the closing exchange rates at 31 December 2012. Investment fund flows are translated at average exchange rates. Gains and losses arising from the translation of funds denominated in foreign currencies are included in the market and other movements column.

Investment operations

Three months ended 31 December 2012

			Opening AUM at 1 Oct 2012	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 31 Dec 2012
			£m	£m	£m	£m	£m	£m	£m
UK	Mutual funds1		13,052	1,656	(672)	984	255	1,239	14,291
	Private equity		3,104	39	(26)	13	21	34	3,138
	Segregated funds		11,803	141	(85)	56	524	580	12,383
	Pooled property funds		1,919	124	(1)	123	(26)	97	2,016
Total UK			29,878	1,960	(784)	1,176	774	1,950	31,828
Europe			6,991	1,006	(333)	673	297	970	7,961
Total UK and Europe			36,869	2,966	(1,117)	1,849	1,071	2,920	39,789
Canada	Mutual funds1		1,666	69	(77)	(8)	(19)	(27)	1,639
	Separate mandates		2,938	88	(169)	(81)	(10)	(91)	2,847
Total Canada			4,604	157	(246)	(89)	(29)	(118)	4,486
Asia and Emerging Markets
	India2		3,250	259	-	259	(203)	56	3,306
	Other		2,188	738	(123)	615	32	647	2,835
Total Asia and Emerging Markets			5,438	997	(123)	874	(171)	703	6,141
Total worldwide investment products excluding money market and related funds			46,911	4,120	(1,486)	2,634	871	3,505	50,416
	UK money market funds3		-	-	-	-	-	-	-
	India cash funds3		1,425	(259)	-	(259)	30	(229)	1,196
Total worldwide investment products			48,336	3,861	(1,486)	2,375	901	3,276	51,612

Total third party assets under management comprise the investment business noted above together with third party insurance contracts. New business relating to third party insurance contracts is disclosed as insurance business for reporting purposes. An analysis of total third party AUM is shown below.

	Opening AUM at 1 Oct 2012	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 31 Dec 2012
	£m	£m	£m	£m	£m	£m	£m
Third party investment products	48,336	3,861	(1,486)	2,375	901	3,276	51,612
Third party insurance contracts (new business classified as insurance products)	30,452	1,498	(990)	508	448	956	31,408
Total third party assets under management	78,788	5,359	(2,476)	2,883	1,349	4,232	83,020
UK money market funds and India cash funds3	1,425	(259)	-	(259)	30	(229)	1,196
Total third party assets under management excluding money market and related funds	77,363	5,618	(2,476)	3,142	1,319	4,461	81,824
Standard Life Investments - total assets under management	163,422						167,723

¹    Included within mutual funds net flows are amounts also included within UK and Canada mutual funds, UK individual SIPP and UK corporate pensions long-term savings operations net flows and new business.

²    Asia and Emerging Markets gross inflows include India where, due to the nature of the Indian investment sales market, the new business is shown as the net of sales less redemptions. India cash funds are included as money market and related funds in the table.

³    Due to the nature of the UK money market funds and India cash funds, the flows are calculated using average net client balances. Other movements are derived as the difference between these average net inflows and the movement in the opening and closing AUM.

⁴    Funds denominated in foreign currencies have been translated to Sterling using the closing exchange rates at 31 December 2012. Investment fund flows are translated at average exchange rates. Gains and losses arising from the translation of funds denominated in foreign currencies are included in the market and other movements column.

4.6 Analysis of new business

Long-term savings operations new business

12 months ended 31 December 2012

		Single premiums		New regular premiums		PVNBP1
	Fee (F) –   Spread/risk (S/R)	12 months to 31 Dec 2012	12 months to 31 Dec 2011	12 months to 31 Dec 2012	12 months to 31 Dec 2011	12 months to 31 Dec 2012	12 months to 31 Dec 2011	Change	Change in constant currency
		£m	£m	£m	£m	£m	£m	%	%
UK
Individual SIPP2	F	2,782	3,278	61	77	3,007	3,570	(16%)	(16%)
Other individual pensions	F	303	320	17	22	340	366	(7%)	(7%)
Investment bonds	F	149	179	-	-	150	179	(16%)	(16%)
Mutual funds2	F	1,607	1,794	23	24	1,808	1,972	(8%)	(8%)
UK retail fee business		4,841	5,571	101	123	5,305	6,087	(13%)	(13%)
Corporate pensions2	F	892	1,889	535	620	3,397	4,607	(26%)	(26%)
UK retail and corporate fee business		5,733	7,460	636	743	8,702	10,694	(19%)	(19%)
Institutional pensions	F	3,896	3,027	2	1	3,897	3,028	29%	29%
UK total fee business		9,629	10,487	638	744	12,599	13,722	(8%)	(8%)
Annuities	S/R	462	312	-	-	462	312	48%	48%
Protection	S/R	-	-	-	-	1	1	-	-
UK long-term savings		10,091	10,799	638	744	13,062	14,035	(7%)	(7%)
Europe
Fee	F	602	629	40	37	1,070	1,041	3%	10%
Spread/risk	S/R	35	29	-	-	35	29	21%	33%
Europe long-term savings		637	658	40	37	1,105	1,070	3%	10%
UK and Europe long-term savings		10,728	11,457	678	781	14,167	15,105	(6%)	(6%)
Canada
Fee	F	602	458	57	33	1,612	937	72%	73%
Spread/risk	S/R	74	99	8	4	216	164	32%	33%
Group savings and retirement		676	557	65	37	1,828	1,101	66%	67%
Fee	F	668	540	-	-	668	540	24%	24%
Spread/risk	S/R	133	203	-	4	133	243	(45%)	(45%)
Individual insurance, savings and retirement		801	743	-	4	801	783	2%	3%
Group insurance	S/R	1	4	44	53	680	826	(18%)	(17%)
Mutual funds2	F	275	218	-	-	275	218	26%	27%
Canada long-term savings		1,753	1,522	109	94	3,584	2,928	22%	23%
Asia and Emerging Markets
Wholly owned long-term savings	F	776	909	41	49	1,020	1,205	(15%)	(16%)
India3		33	46	94	89	435	414	5%	19%
China3		43	36	10	11	87	86	1%	(2%)
Joint ventures long-term savings		76	82	104	100	522	500	4%	15%
Asia and Emerging Markets long-term savings		852	991	145	149	1,542	1,705	(10%)	(7%)
Total worldwide long-term savings		13,333	13,970	932	1,024	19,293	19,738	(2%)	(2%)

¹    Present value of new business premiums (PVNBP) is the industry measure of insurance new business sales under the EEV methodology, calculated as 100% of single premiums plus the expected present value of new regular premiums.

²      Mutual funds new business is also included within mutual funds net flows in investment operations. In addition, non-insured SIPP mutual funds new business included within individual SIPP and corporate pensions is also included within UK mutual funds net flows in investment operations.   

³    Standard Life's share of the joint venture company's new business.

⁴    New business gross sales for overseas operations are calculated using average exchange rates.

Long-term savings operations new business

Three months ended 31 December 2012 

		Single premiums		New regular premiums		PVNBP1
	Fee (F) – Spread/risk (S/R)	3 months to 31 Dec 2012	3 months to 31 Dec 2011	3 months to 31 Dec 2012	3 months to 31 Dec 2011	3 months to 31 Dec 2012	3 months to 31 Dec 2011	Change	Change in constant currency
		£m	£m	£m	£m	£m	£m	%	%
UK
Individual SIPP2	F	623	674	11	14	666	730	(9%)	(9%)
Other individual pensions	F	40	39	4	6	49	53	(8%)	(8%)
Investment bonds	F	41	31	-	-	42	31	35%	35%
Mutual funds2	F	417	339	4	4	445	376	18%	18%
UK retail fee business		1,121	1,083	19	24	1,202	1,190	1%	1%
Corporate pensions2	F	174	248	112	95	690	666	4%	4%
UK retail and corporate fee business		1,295	1,331	131	119	1,892	1,856	2%	2%
Institutional pensions	F	919	711	2	-	919	711	29%	29%
UK total fee business		2,214	2,042	133	119	2,811	2,567	10%	10%
Annuities	S/R	156	82	-	-	156	82	90%	90%
Protection	S/R	-	-	-	-	-	-	-	-
UK long-term savings		2,370	2,124	133	119	2,967	2,649	12%	12%
Europe
Fee	F	198	173	17	14	475	347	37%	45%
Spread/risk	S/R	10	17	-	-	10	17	(41%)	(32%)
Europe long-term savings		208	190	17	14	485	364	33%	42%
UK and Europe long-term savings		2,578	2,314	150	133	3,452	3,013	15%	15%
Canada
Fee	F	154	137	17	9	419	248	69%	69%
Spread/risk	S/R	24	41	2	-	58	54	7%	12%
Group savings and retirement		178	178	19	9	477	302	58%	59%
Fee	F	192	146	-	-	192	146	32%	32%
Spread/risk	S/R	33	49	-	-	33	53	(38%)	(37%)
Individual insurance, savings and retirement		225	195	-	-	225	199	13%	14%
Group insurance	S/R	-	1	14	10	214	145	48%	49%
Mutual funds2	F	69	51	-	-	69	51	35%	39%
Canada long-term savings		472	425	33	19	985	697	41%	42%
Asia and Emerging Markets
Wholly owned long-term savings	F	212	227	14	13	299	316	(5%)	(5%)
India3		6	9	25	21	111	96	16%	24%
China3		7	8	3	3	18	20	(10%)	(7%)
Joint ventures long-term savings		13	17	28	24	129	116	11%	19%
Asia and Emerging Markets long-term savings		225	244	42	37	428	432	(1%)	1%
Total worldwide long-term savings		3,275	2,983	225	189	4,865	4,142	17%	19%

¹    Present value of new business premiums (PVNBP) is the industry measure of insurance new business sales under the EEV methodology, calculated as 100% of single premiums plus the expected present value of new regular premiums. The PVNBP figures for the three months to 31 December 2012 and 31 December 2011 exclude the full impact of the year end changes to non-economic assumptions. The effect of changes to year end non-economic assumptions was an increase in total PVNBP of £6m (2011: increase £91m).

²      Mutual funds new business is also included within mutual funds net flows in investment operations. In addition, non-insured SIPP mutual funds new business included within individual SIPP and corporate pensions is also included within UK mutual funds net flows in investment operations.   

³    Standard Life's share of the joint venture company's new business.

⁴    New business gross sales for overseas operations are calculated using average exchange rates.

4.6 Analysis of new business continued 

Long-term savings operations new business

15 months ended 31 December 2012

		PVNBP
	Fee (F) - Spread/risk (S/R)	3 months to 31 Dec 20121	3 months to 30 Sep 2012	3 months to 30 Jun 2012	3 months to 31 Mar 2012	3 months to 31 Dec 20111
		£m	£m	£m	£m	£m
UK
Individual SIPP	F	666	668	777	892	730
Other individual pensions	F	49	66	132	94	53
Investment bonds	F	42	34	36	38	31
Mutual funds	F	445	427	462	454	376
UK retail fee business		1,202	1,195	1,407	1,478	1,190
Corporate pensions	F	690	635	1,058	937	666
UK retail and corporate fee business		1,892	1,830	2,465	2,415	1,856
Institutional pensions	F	919	1,025	848	1,105	711
UK total fee business		2,811	2,855	3,313	3,520	2,567
Annuities	S/R	156	106	100	100	82
Protection	S/R	-	-	1	-	-
UK long-term savings		2,967	2,961	3,414	3,620	2,649
Europe
Fee	F	475	221	197	262	347
Spread/risk	S/R	10	8	6	11	17
Europe long-term savings		485	229	203	273	364
UK and Europe long-term savings		3,452	3,190	3,617	3,893	3,013
Canada
Fee	F	419	421	573	199	248
Spread/risk	S/R	58	7	112	39	54
Group savings and retirement		477	428	685	238	302
Fee	F	192	123	166	187	146
Spread/risk	S/R	33	40	29	31	53
Individual insurance, savings and retirement		225	163	195	218	199
Group insurance	S/R	214	165	137	164	145
Mutual funds	F	69	63	66	77	51
Canada long-term savings		985	819	1,083	697	697
Asia and Emerging Markets
Wholly owned long-term savings	F	299	227	248	255	316
India2		111	91	70	163	96
China2		18	18	19	32	20
Joint ventures long-term savings		129	109	89	195	116
Asia and Emerging Markets long-term savings		428	336	337	450	432
Total worldwide long-term savings		4,865	4,345	5,037	5,040	4,142

¹    The three month periods to 31 December 2012 and to 31 December 2011 exclude the full impact of year end changes to non-economic assumptions. The effect of changes to year end non-economic assumptions was an increase in total PVNBP of £6m (2011: increase £91m).

²    Amounts shown reflect Standard Life's share of the joint venture company's new business.

 

END

 

 

FR LFFFIVVIRIIV