Half Yearly Report - Part 5 of 5

RNS Number : 2176L

Standard Life plc

08 August 2013

 



Standard Life plc

Half Year Results 2013

Part 5 of 5

5  Independent review report to Standard Life plc

Introduction

We have been engaged by Standard Life plc (the Company) to review the financial information in the Half Year Results 2013 for the six months ended 30 June 2013, which comprises:

·   The International Financial Reporting Standards (IFRS) condensed consolidated income statement, the IFRS condensed consolidated statement of comprehensive income, the IFRS condensed consolidated statement of financial position, the IFRS condensed consolidated statement of changes in equity, the IFRS condensed consolidated statement of cash flows and related notes prepared in accordance with the IFRS accounting policies set out in Note 3.1 (together with the IFRS condensed consolidated financial information), and

·   The European Embedded Value (EEV) consolidated income statement, the EEV earnings per share statement, the EEV

consolidated statement of comprehensive income, the EEV consolidated statement of financial position, and related notes prepared on the EEV basis set out in Note 4.1 (together with the EEV financial information).

We have read the other information contained in the Half Year Results 2013, including the pro forma reconciliation of consolidated Group operating profit to IFRS profit for the period, and considered whether it contains any apparent misstatements or material inconsistencies with either the IFRS condensed consolidated financial information or the EEV financial information.

Directors' responsibilities

The Half Year Results 2013 is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half Year Results 2013 in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority. 

As disclosed in Note 3.1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The IFRS financial information included in the Half Year Results 2013 has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as adopted by the European Union. The Directors are responsible for preparing the EEV financial information in accordance with the EEV basis set out in Note 4.1.

Our responsibility

Our responsibility is to express to the Company a conclusion on the IFRS condensed consolidated financial information included in the Half Year Results 2013 based on our review. This report on the IFRS financial information, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose.

Our responsibility on the EEV financial information in the Half Year Results 2013 is to express to the Company a conclusion based on our review. This report on the EEV financial information, including the conclusion, has been prepared for and only for the Company in accordance with our engagement letter dated 16 July 2013 and for no other purpose.

We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that:

·   the IFRS condensed consolidated financial information in the Half Year Results 2013 for the six months ended 30 June 2013 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority, and

·   the EEV financial information in the Half Year Results 2013 for the six months ended  30 June 2013 is not prepared, in all material respects, in accordance with the EEV basis set out in Note 4.1.

PricewaterhouseCoopers LLP

Chartered Accountants

Edinburgh

8 August 2013

(a)	The maintenance and integrity of the Standard Life website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
(b)	Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

6 Supplementary information

6.1 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)

Six months ended 30 June 2013

	Opening AUA at 1 Jan 2013	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 30 Jun 2013
	£bn	£bn	£bn	£bn	£bn	£bn
Fee business
UK retail new	28.7	3.1	(1.4)	1.7	1.3	31.7
UK retail old	31.7	0.3	(1.6)	(1.3)	2.1	32.5
UK retail	60.4	3.4	(3.0)	0.4	3.4	64.2
Corporate	24.5	1.6	(1.1)	0.5	1.5	26.5
UK retail and corporate	84.9	5.0	(4.1)	0.9	4.9	90.7
Institutional pensions	21.3	3.2	(1.3)	1.9	0.8	24.0
Conventional with profits	4.1	0.1	(0.8)	(0.7)	0.1	3.5
UK total	110.3	8.3	(6.2)	2.1	5.8	118.2
Europe	13.6	1.1	(0.6)	0.5	0.8	14.9
Standard Life Investments third party	83.0	12.8	(5.7)	7.1	3.3	93.4
Canada	15.9	1.4	(1.2)	0.2	0.9	17.0
Asia and Emerging Markets (wholly owned)	0.2	-	-	-	0.1	0.3
Consolidation/eliminations1	(42.3)	(5.7)	2.6	(3.1)	(1.9)	(47.3)
Total fee business	180.7	17.9	(11.1)	6.8	9.0	196.5
Spread/risk
UK	15.3	0.3	(0.6)	(0.3)	(0.3)	14.7
Europe	0.5	-	-	-	0.1	0.6
Canada	9.9	0.5	(0.6)	(0.1)	(0.3)	9.5
Total spread/risk business	25.7	0.8	(1.2)	(0.4)	(0.5)	24.8
Assets not backing products in long-term savings business	8.5	-	-	-	(0.6)	7.9
Joint ventures	1.5	0.2	(0.1)	0.1	-	1.6
Other corporate assets	2.0	-	-	-	0.3	2.3
Other consolidation/eliminations1	(0.3)	-	-	-	-	(0.3)
Group assets under administration	218.1	18.9	(12.4)	6.5	8.2	232.8
Group assets under administration managed by:
Standard Life Group entities	176.0					187.4
Other third party managers	42.1					45.4
Total	218.1					232.8

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)

Six months ended 30 June 2012

	Opening AUA at 1 Jan 2012	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 30 Jun 2012
	£bn	£bn	£bn	£bn	£bn	£bn
Fee business
UK retail new	23.7	2.7	(1.2)	1.5	0.7	25.9
UK retail old	32.1	0.5	(1.9)	(1.4)	0.7	31.4
UK retail	55.8	3.2	(3.1)	0.1	1.4	57.3
Corporate	22.0	1.6	(0.8)	0.8	0.3	23.1
UK retail and corporate	77.8	4.8	(3.9)	0.9	1.7	80.4
Institutional pensions	17.5	2.1	(1.2)	0.9	0.8	19.2
Conventional with profits	5.3	-	(0.7)	(0.7)	0.1	4.7
UK total	100.6	6.9	(5.8)	1.1	2.6	104.3
Europe	11.5	1.0	(0.4)	0.6	0.2	12.3
Standard Life Investments third party	71.8	7.9	(7.3)	0.6	1.9	74.3
Canada	14.3	1.4	(1.1)	0.3	0.1	14.7
Asia and Emerging Markets (wholly owned)	0.1	-	-	-	0.1	0.2
Consolidation/eliminations1	(35.5)	(3.9)	2.4	(1.5)	(1.2)	(38.2)
Total fee business	162.8	13.3	(12.2)	1.1	3.7	167.6
Spread/risk
UK	14.4	0.3	(0.6)	(0.3)	0.6	14.7
Europe	0.5	-	-	-	-	0.5
Canada	10.3	0.4	(0.6)	(0.2)	0.1	10.2
Total spread/risk business	25.2	0.7	(1.2)	(0.5)	0.7	25.4
Assets not backing products in long-term savings business	8.5	-	-	-	0.7	9.2
Joint ventures	1.2	0.2	(0.1)	0.1	-	1.3
Other corporate assets	1.6	-	-	-	-	1.6
Other consolidation/eliminations1	(0.9)	-	-	-	-	(0.9)
Group assets under administration	198.4	14.2	(13.5)	0.7	5.1	204.2
Group assets under administration managed by:
Standard Life Group entities	163.3					167.0
Other third party managers	35.1					37.2
Total	198.4					204.2

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.

6.1 Group assets under administration and net flows continued

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	11.5	2.1	(1.0)	1.1	1.0	13.6
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)	0.1	0.1	-	0.1	-	0.2
Consolidation/eliminations1	(35.5)	(8.3)	4.6	(3.7)	(3.1)	(42.3)
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

Six months ended 30 June 2013

	Fee (F) - Spread/risk (S/R)	Opening AUA at 1 Jan 2013	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 30 Jun 2013
		£bn	£bn	£bn	£bn	£bn	£bn
UK
Individual SIPP	F	18.8	1.5	(1.0)	0.5	1.2	20.5
Investment bonds	F	0.5	-	-	-	(0.1)	0.4
Mutual funds	F	7.6	1.2	(0.3)	0.9	0.2	8.7
Wealth	F	1.8	0.4	(0.1)	0.3	-	2.1
UK retail new fee business		28.7	3.1	(1.4)	1.7	1.3	31.7
Legacy life (excluding conventional with profits)	F	2.1	-	(0.1)	(0.1)	0.1	2.1
Other individual pensions	F	22.9	0.3	(1.1)	(0.8)	1.6	23.7
Investment bonds	F	6.7	-	(0.4)	(0.4)	0.4	6.7
UK retail old fee business		31.7	0.3	(1.6)	(1.3)	2.1	32.5
UK retail fee business		60.4	3.4	(3.0)	0.4	3.4	64.2
Corporate pensions	F	24.5	1.6	(1.1)	0.5	1.5	26.5
UK retail and corporate fee business		84.9	5.0	(4.1)	0.9	4.9	90.7
Institutional pensions	F	21.3	3.2	(1.3)	1.9	0.8	24.0
Conventional with profits	F	4.1	0.1	(0.8)	(0.7)	0.1	3.5
UK total fee business	F	110.3	8.3	(6.2)	2.1	5.8	118.2
Annuities	S/R	15.3	0.3	(0.6)	(0.3)	(0.3)	14.7
Assets not backing products		6.5	-	-	-	(0.4)	6.1
UK long-term savings		132.1	8.6	(6.8)	1.8	5.1	139.0
Fee	F	13.6	1.1	(0.6)	0.5	0.8	14.9
Spread/risk	S/R	0.5	-	-	-	0.1	0.6
Europe long-term savings		14.1	1.1	(0.6)	0.5	0.9	15.5
UK and Europe long-term savings		146.2	9.7	(7.4)	2.3	6.0	154.5
Canada1
Fee	F	12.0	0.9	(0.8)	0.1	0.7	12.8
Spread/risk	S/R	3.6	0.1	(0.2)	(0.1)	-	3.5
Corporate pensions		15.6	1.0	(1.0)	-	0.7	16.3
Corporate benefits	S/R	0.6	0.3	(0.2)	0.1	(0.1)	0.6
Retail segregated funds	F	2.3	0.4	(0.2)	0.2	0.1	2.6
Retail mutual funds	F	1.6	0.1	(0.2)	(0.1)	0.1	1.6
Retail investment funds		3.9	0.5	(0.4)	0.1	0.2	4.2
Retail spread/risk	S/R	5.7	0.1	(0.2)	(0.1)	(0.2)	5.4
Asset not backing products		2.0	-	-	-	(0.2)	1.8
Canada long-term savings		27.8	1.9	(1.8)	0.1	0.4	28.3
Asia and Emerging Markets
Wholly owned long-term savings	F	0.2	-	-	-	0.1	0.3
Joint ventures long-term savings		1.5	0.2	(0.1)	0.1	-	1.6
Asia and Emerging Markets long-term savings		1.7	0.2	(0.1)	0.1	0.1	1.9
Total worldwide long-term savings		175.7	11.8	(9.3)	2.5	6.5	184.7
Other corporate assets		2.0	-	-	-	0.3	2.3
Standard Life Investments third party assets under management		83.0	12.8	(5.7)	7.1	3.3	93.4
Consolidation and elimination adjustments2,3		(42.6)	(5.7)	2.6	(3.1)	(1.9)	(47.6)
Group assets under administration		218.1	18.9	(12.4)	6.5	8.2	232.8

¹      Canada categories have been revised to align with other business segments. The main changes are that group products are now referred to as corporate and individual products as retail. 

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 £34.9bn (31 December 2012: £31.4bn), UK mutual funds and other £10.3bn (31 December 2012: £8.9bn) and Canada mutual funds of £1.6bn (31 December 2012: £1.6bn).

6.2 Long-term savings operations net flows

Six months ended 30 June 2013

		Gross flows	Redemptions	Net flows	Gross flows	Redemptions	Net flows
	Fee (F) - Spread/risk (S/R)	6 months to 30 Jun 2013	6 months to 30 Jun 2013	6 months to 30 Jun 2013	6 months to 30 Jun 2012	6 months to 30 Jun 2012	6 months to 30 Jun 2012
		£m	£m	£m	£m	£m	£m
UK
Individual SIPP	F	1,484	(1,014)	470	1,494	(929)	565
Investment bonds	F	50	(15)	35	48	(14)	34
Mutual funds	F	1,161	(266)	895	778	(225)	553
Wealth	F	376	(46)	330	415	(25)	390
UK retail new fee business		3,071	(1,341)	1,730	2,735	(1,193)	1,542
Legacy life (excluding conventional with profits)	F	48	(172)	(124)	56	(159)	(103)
Other individual pensions	F	303	(1,088)	(785)	412	(1,177)	(765)
Investment bonds	F	13	(461)	(448)	31	(593)	(562)
UK retail old fee business		364	(1,721)	(1,357)	499	(1,929)	(1,430)
UK retail fee business		3,435	(3,062)	373	3,234	(3,122)	112
Corporate pensions	F	1,605	(1,071)	534	1,583	(820)	763
UK retail and corporate fee business		5,040	(4,133)	907	4,817	(3,942)	875
Institutional pensions	F	3,190	(1,341)	1,849	2,054	(1,174)	880
Conventional with profits	F	50	(740)	(690)	70	(705)	(635)
UK total fee business		8,280	(6,214)	2,066	6,941	(5,821)	1,120
Annuities	S/R	268	(585)	(317)	281	(585)	(304)
Protection	S/R	30	(23)	7	35	(26)	9
UK long-term savings		8,578	(6,822)	1,756	7,257	(6,432)	825
Europe
Fee	F	1,106	(536)	570	973	(456)	517
Spread/risk	S/R	16	(16)	-	21	(15)	6
Europe long-term savings		1,122	(552)	570	994	(471)	523
UK and Europe long-term savings		9,700	(7,374)	2,326	8,251	(6,903)	1,348
Canada1
Fee	F	890	(783)	107	807	(716)	91
Spread/risk	S/R	101	(221)	(120)	98	(211)	(113)
Corporate pensions		991	(1,004)	(13)	905	(927)	(22)
Corporate benefits	S/R	227	(185)	42	222	(178)	44
Retail segregated funds	F	381	(188)	193	353	(169)	184
Retail mutual funds	F	118	(180)	(62)	143	(150)	(7)
Retail investments funds		499	(368)	131	496	(319)	177
Retail spread/risk	S/R	132	(238)	(106)	114	(257)	(143)
Canada long-term savings		1,849	(1,795)	54	1,737	(1,681)	56
Asia and Emerging Markets
Wholly owned long-term savings	F	51	(12)	39	38	(8)	30
Joint ventures long-term savings2		229	(104)	125	215	(75)	140
Asia and Emerging Markets long-term savings		280	(116)	164	253	(83)	170
Total worldwide long-term savings		11,829	(9,285)	2,544	10,241	(8,667)	1,574

¹      Canada categories have been revised to align with other business segments. The main changes are that group products are now referred to as corporate and individual products as retail. 

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

Three months ended 30 June 2013

		Gross flows	Redemptions	Net flows	Gross flows	Redemptions	Net flows
	Fee (F) - Spread/risk (S/R)	3 months to 30 Jun 2013	3 months to 30 Jun 2013	3 months to 30 Jun 2013	3 months to 30 Jun 2012	3 months to 30 Jun 2012	3 months to 30 Jun 2012
		£m	£m	£m	£m	£m	£m
UK
Individual SIPP	F	750	(536)	214	667	(469)	198
Investment bonds	F	29	(7)	22	23	(7)	16
Mutual funds	F	640	(146)	494	382	(111)	271
Wealth	F	202	(26)	176	219	(14)	205
UK retail new fee business		1,621	(715)	906	1,291	(601)	690
Legacy life (excluding conventional with profits)	F	23	(94)	(71)	27	(84)	(57)
Other individual pensions	F	140	(549)	(409)	224	(586)	(362)
Investment bonds	F	6	(218)	(212)	16	(279)	(263)
UK retail old fee business		169	(861)	(692)	267	(949)	(682)
UK retail fee business		1,790	(1,576)	214	1,558	(1,550)	8
Corporate pensions	F	795	(523)	272	858	(466)	392
UK retail and corporate fee business		2,585	(2,099)	486	2,416	(2,016)	400
Institutional pensions	F	1,458	(601)	857	881	(740)	141
Conventional with profits	F	24	(412)	(388)	34	(388)	(354)
UK total fee business		4,067	(3,112)	955	3,331	(3,144)	187
Annuities	S/R	139	(299)	(160)	140	(294)	(154)
Protection	S/R	15	(12)	3	17	(10)	7
UK long-term savings		4,221	(3,423)	798	3,488	(3,448)	40
Europe
Fee	F	608	(288)	320	487	(215)	272
Spread/risk	S/R	7	(8)	(1)	6	(8)	(2)
Europe long-term savings		615	(296)	319	493	(223)	270
UK and Europe long-term savings		4,836	(3,719)	1,117	3,981	(3,671)	310
Canada1
Fee	F	379	(394)	(15)	398	(296)	102
Spread/risk	S/R	46	(105)	(59)	46	(98)	(52)
Corporate pensions		425	(499)	(74)	444	(394)	50
Corporate benefits	S/R	112	(91)	21	111	(88)	23
Retail segregated funds	F	183	(93)	90	166	(78)	88
Retail mutual funds	F	52	(77)	(25)	66	(68)	(2)
Retail investment funds		235	(170)	65	232	(146)	86
Retail spread/risk	S/R	74	(119)	(45)	55	(123)	(68)
Canada long-term savings		846	(879)	(33)	842	(751)	91
Asia and Emerging Markets
Wholly owned long-term savings	F	27	(6)	21	18	(4)	14
Joint ventures long-term savings2		75	(48)	27	72	(35)	37
Asia and Emerging Markets long-term savings		102	(54)	48	90	(39)	51
Total worldwide long-term savings		5,784	(4,652)	1,132	4,913	(4,461)	452

¹      Canada categories have been revised to align with other business segments. The main changes are that group products are now referred to as corporate and individual products as retail. 

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

6.2 Long-term savings operations net flows continued

15 months ended 30 June 2013

		Net flows
	Fee (F) - Spread/risk (S/R)	3 months to 30 Jun 2013	3 months to 31 Mar 2013	3 months to 31 Dec 2012	3 months to 30 Sep 2012	3 months to 30 Jun 2012
		£m	£m	£m	£m	£m
UK
Individual SIPP	F	214	256	115	171	198
Investment bonds	F	22	13	15	18	16
Mutual funds	F	494	401	278	265	271
Wealth	F	176	154	167	182	205
UK retail new fee business		906	824	575	636	690
Legacy life (excluding conventional with profits)	F	(71)	(53)	(56)	(70)	(57)
Other individual pensions	F	(409)	(376)	(573)	(427)	(362)
Investment bonds	F	(212)	(236)	(239)	(262)	(263)
UK retail old fee business		(692)	(665)	(868)	(759)	(682)
UK retail fee business		214	159	(293)	(123)	8
Corporate pensions	F	272	262	196	265	392
UK retail and corporate fee business		486	421	(97)	142	400
Institutional pensions	F	857	992	212	740	141
Conventional with profits	F	(388)	(302)	(408)	(404)	(354)
UK total fee business		955	1,111	(293)	478	187
Annuities	S/R	(160)	(157)	(96)	(147)	(154)
Protection	S/R	3	4	5	3	7
UK long-term savings		798	958	(384)	334	40
Europe
Fee	F	320	250	355	266	272
Spread/risk	S/R	(1)	1	3	-	(2)
Europe long-term savings		319	251	358	266	270
UK and Europe long-term savings		1,117	1,209	(26)	600	310
Canada1
Fee	F	(15)	122	117	292	102
Spread/risk	S/R	(59)	(61)	(54)	(57)	(52)
Corporate pensions		(74)	61	63	235	50
Corporate benefits	S/R	21	21	24	24	23
Retail segregated funds	F	90	103	95	52	88
Retail mutual funds	F	(25)	(37)	(9)	-	(2)
Retail investment funds		65	66	86	52	86
Retail spread/risk	S/R	(45)	(61)	(68)	(65)	(68)
Canada long-term savings		(33)	87	105	246	91
Asia and Emerging Markets
Wholly owned long-term savings	F	21	18	12	13	14
Joint ventures long-term savings2		27	98	54	55	37
Asia and Emerging Markets long-term savings		48	116	66	68	51
Total worldwide long-term savings		1,132	1,412	145	914	452

¹      Canada categories have been revised to align with other business segments. The main changes are that group products are now referred to as corporate and individual products as retail. 

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

6.3 Investment operations

Six months ended 30 June 2013

Third party assets under management by geography

		Opening AUM at 1 Jan 2013	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2013
		£m	£m	£m	£m	£m	£m	£m
UK	Wholesale	14,815	3,504	(1,622)	1,882	683	2,565	17,380
	Institutional	39,437	3,584	(1,979)	1,605	1,374	2,979	42,416
		54,252	7,088	(3,601)	3,487	2,057	5,544	59,796
Europe	Wholesale	2,457	1,244	(648)	596	355	951	3,408
	Institutional	5,550	849	(82)	767	306	1,073	6,623
		8,007	2,093	(730)	1,363	661	2,024	10,031
Canada	Wholesale	3,626	426	(365)	61	146	207	3,833
	Institutional	9,397	831	(570)	261	81	342	9,739
		13,023	1,257	(935)	322	227	549	13,572
US	Institutional	1,997	1,505	(144)	1,361	225	1,586	3,583
Asia Pacific	Wholesale	416	643	(84)	559	113	672	1,088
	Institutional	823	29	(219)	(190)	102	(88)	735
		1,239	672	(303)	369	215	584	1,823
India	Wholesale	3,306	131	-	131	(171)	(40)	3,266
	Cash funds	1,196	93	-	93	30	123	1,319
		4,502	224	-	224	(141)	83	4,585
Total	Wholesale	24,620	5,948	(2,719)	3,229	1,126	4,355	28,975
	Institutional	57,204	6,798	(2,994)	3,804	2,088	5,892	63,096
	Cash funds	1,196	93	-	93	30	123	1,319
Total third party AUM		83,020	12,839	(5,713)	7,126	3,244	10,370	93,390

Third party assets under management by asset class

	Opening AUM at 1 Jan 2013	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2013
	£m	£m	£m	£m	£m	£m	£m
Equities	18,326	1,042	(1,690)	(648)	1,367	719	19,045
Fixed Income	27,342	2,720	(1,483)	1,237	(931)	306	27,648
Multi Asset1	22,055	7,420	(1,854)	5,566	1,718	7,284	29,339
Real Estate	6,525	288	(165)	123	10	133	6,658
MyFolio	2,241	910	(160)	750	110	860	3,101
Other2	6,531	459	(361)	98	970	1,068	7,599
Total third party AUM	83,020	12,839	(5,713)	7,126	3,244	10,370	93,390

Third party investment products and insurance contracts and total AUM

	Opening AUM at 1 Jan 2013	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2013
	£m	£m	£m	£m	£m	£m	£m
Third party investment products	51,612	8,635	(3,850)	4,785	2,105	6,890	58,502
Third party insurance contracts	31,408	4,204	(1,863)	2,341	1,139	3,480	34,888
Total third party AUM	83,020	12,839	(5,713)	7,126	3,244	10,370	93,390
Total AUM	167,723						178,792

¹    Comprises suite of global absolute return strategies and balanced funds.

²    Comprises cash and private equity.

³    Funds denominated in foreign currencies have been translated to Sterling using the closing exchange rates at 30 June 2013. 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

6.3 Investment operations continued

Three months ended 30 June 2013

Third party assets under management by geography

		Opening AUM at 1 Apr 2013	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2013
		£m	£m	£m	£m	£m	£m	£m
UK	Wholesale	16,432	1,842	(880)	962	(14)	948	17,380
	Institutional	42,006	1,558	(769)	789	(379)	410	42,416
		58,438	3,400	(1,649)	1,751	(393)	1,358	59,796
Europe	Wholesale	3,010	731	(358)	373	25	398	3,408
	Institutional	5,915	727	(39)	688	20	708	6,623
		8,925	1,458	(397)	1,061	45	1,106	10,031
Canada	Wholesale	3,980	194	(179)	15	(162)	(147)	3,833
	Institutional	10,214	450	(248)	202	(677)	(475)	9,739
		14,194	644	(427)	217	(839)	(622)	13,572
US	Institutional	2,784	899	(91)	808	(9)	799	3,583
Asia Pacific	Wholesale	751	389	(60)	329	8	337	1,088
	Institutional	783	(39)	(84)	(123)	75	(48)	735
		1,534	350	(144)	206	83	289	1,823
India	Wholesale	3,578	(51)	-	(51)	(261)	(312)	3,266
	Cash funds	949	157	-	157	213	370	1,319
		4,527	106	-	106	(48)	58	4,585
Total	Wholesale	27,751	3,105	(1,477)	1,628	(404)	1,224	28,975
	Institutional	61,702	3,595	(1,231)	2,364	(970)	1,394	63,096
	Cash funds	949	157	-	157	213	370	1,319
Total third party AUM		90,402	6,857	(2,708)	4,149	(1,161)	2,988	93,390

Third party assets under management by asset class

	Opening AUM at 1 Apr 2013	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2013
	£m	£m	£m	£m	£m	£m	£m
Equities	19,402	412	(573)	(161)	(196)	(357)	19,045
Fixed Income	28,100	1,350	(764)	586	(1,038)	(452)	27,648
Multi Asset1	26,311	4,083	(978)	3,105	(77)	3,028	29,339
Real Estate	6,553	188	(72)	116	(11)	105	6,658
MyFolio	2,760	482	(89)	393	(52)	341	3,101
Other2	7,276	342	(232)	110	213	323	7,599
Total third party AUM	90,402	6,857	(2,708)	4,149	(1,161)	2,988	93,390

Third party investment products and insurance contracts and total AUM

	Opening AUM at 1 Apr 2013	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2013
	£m	£m	£m	£m	£m	£m	£m
Third party investment products	56,013	4,917	(1,849)	3,068	(579)	2,489	58,502
Third party insurance contracts	34,389	1,940	(859)	1,081	(582)	499	34,888
Total third party AUM	90,402	6,857	(2,708)	4,149	(1,161)	2,988	93,390
Total AUM	179,132						178,792

¹    Comprises suite of global absolute return strategies and balanced funds.

²    Comprises cash and private equity.

³   Funds denominated in foreign currencies have been translated to Sterling using the closing exchange rates at 30 June 2013. 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.

6.4 Long-term savings operations new business

Six months ended 30 June 2013

		Single premiums			New regular premiums		PVNBP1
	Fee (F) - Spread/risk (S/R)	6 months to 30 June 2013	6 months to 30 June 2012	6 months to 30 June 2013		6 months to 30 June 2012	6 months to 30 June 2013	6 months to 30 June 2012	Change	Change in constant currency
		£m	£m	£m		£m	£m	£m	%	%
UK
Individual SIPP	F	1,519	1,530	24		36	1,607	1,669	(4%)	(4%)
Investment bonds	F	50	48	-		-	50	48	4%	4%
Mutual funds	F	1,200	798	13		15	1,307	916	43%	43%
UK retail new fee business		2,769	2,376	37		51	2,964	2,633	13%	13%
Other individual pensions	F	119	205	8		9	137	226	(39%)	(39%)
Investment bonds	F	6	26	-		-	6	26	(77%)	(77%)
UK retail old fee business		125	231	8		9	143	252	(43%)	(43%)
UK retail fee business		2,894	2,607	45		60	3,107	2,885	8%	8%
Corporate pensions	F	518	566	499		320	2,818	1,995	41%	41%
UK retail and corporate fee business		3,412	3,173	544		380	5,925	4,880	21%	21%
Institutional pensions	F	3,085	1,953	10		-	3,120	1,953	60%	60%
UK total fee business		6,497	5,126	554		380	9,045	6,833	32%	32%
Annuities	S/R	186	200	-		-	186	200	(7%)	(7%)
Protection	S/R	-	-	-		-	1	1	-	-
UK long-term savings		6,683	5,326	554		380	9,232	7,034	31%	31%
Europe
Fee	F	760	654	18		15	954	837	14%	12%
Spread/risk	S/R	15	17	-		-	16	17	(6%)	(10%)
Europe long-term savings		775	671	18		15	970	854	14%	12%
UK and Europe long-term savings		7,458	5,997	572		395	10,202	7,888	29%	29%
Canada2
Fee	F	172	146	16		33	575	772	(26%)	(26%)
Spread/risk	S/R	46	43	3		6	118	151	(22%)	(23%)
Corporate pensions		218	189	19		39	693	923	(25%)	(26%)
Corporate benefits	S/R	-	-	17		20	261	301	(13%)	(14%)
Retail segregated funds	F	381	353	-		-	381	353	8%	7%
Retail mutual funds	F	118	143	-		-	118	143	(17%)	(18%)
Retail investment funds		499	496	-		-	499	496	1%	-
Retail spread/risk	S/R	75	60	-		-	75	60	25%	24%
Canada long-term savings		792	745	36		59	1,528	1,780	(14%)	(15%)
Asia and Emerging Markets
Wholly owned long-term savings	F	9	5	30		20	210	125	68%	64%
India3		29	21	48		47	239	233	3%	6%
China3		15	28	6		5	42	51	(18%)	(20%)
Joint ventures long-term savings		44	49	54		52	281	284	(1%)	1%
Asia and Emerging Markets long-term savings		53	54	84		72	491	409	20%	21%
Total worldwide long-term savings		8,303	6,796	692		526	12,221	10,077	21%	21%

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    Canada categories have been revised to align with other business segments. The main changes are that group products are now referred to as corporate and individual products as retail. 

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.

6.4 Long-term savings operations new business continued

Three months ended 30 June 2013

		Single premiums		New regular premiums		PVNBP1
	Fee (F) - Spread/risk (S/R)	3 months to 30 June 2013	3 months to 30 June 2012	3 months to 30 June 2013	3 months to 30 June 2012	3 months to 30 June 2013	3 months to 30 June 2012	Change	Change in constant currency
		£m	£m	£m	£m	£m	£m	%	%
UK
Individual SIPP	F	768	702	8	19	805	777	4%	4%
Investment bonds	F	29	23	-	-	29	23	26%	26%
Mutual funds	F	667	389	2	9	693	462	50%	50%
UK retail new fee business		1,464	1,114	10	28	1,527	1,262	21%	21%
Other individual pensions	F	51	121	4	4	59	132	(55%)	(55%)
Investment bonds	F	1	13	-	-	1	13	(92%)	(92%)
UK retail old fee business		52	134	4	4	60	145	(59%)	(59%)
UK retail fee business		1,516	1,248	14	32	1,587	1,407	13%	13%
Corporate pensions	F	241	340	244	157	1,499	1,058	42%	42%
UK retail and corporate fee business		1,757	1,588	258	189	3,086	2,465	25%	25%
Institutional pensions	F	1,399	848	10	-	1,434	848	69%	69%
UK total fee business		3,156	2,436	268	189	4,520	3,313	36%	36%
Annuities	S/R	94	100	-	-	94	100	(6%)	(6%)
Protection	S/R	-	-	-	-	1	1	-	-
UK long-term savings		3,250	2,536	268	189	4,615	3,414	35%	35%
Europe
Fee	F	424	305	7	7	504	391	29%	26%
Spread/risk	S/R	7	6	-	-	7	6	17%	14%
Europe long-term savings		431	311	7	7	511	397	29%	26%
UK and Europe long-term savings		3,681	2,847	275	196	5,126	3,811	35%	34%
Canada2
Fee	F	53	92	5	24	189	573	(67%)	(67%)
Spread/risk	S/R	18	25	1	5	43	112	(62%)	(63%)
Corporate pensions		71	117	6	29	232	685	(66%)	(67%)
Corporate benefits	S/R	-	-	9	8	126	137	(8%)	(8%)
Retail segregated funds	F	183	166	-	-	183	166	10%	9%
Retail mutual funds	F	52	66	-	-	52	66	(21%)	(22%)
Retail investment funds		235	232	-	-	235	232	1%	-
Retail spread/risk	S/R	45	29	-	-	45	29	55%	54%
Canada long-term savings		351	378	15	37	638	1,083	(41%)	(42%)
Asia and Emerging Markets
Wholly owned long-term savings	F	6	2	16	9	117	54	117%	111%
India3		8	7	9	12	49	70	(30%)	(31%)
China3		5	10	3	2	19	19	-	(7%)
Joint ventures long-term savings		13	17	12	14	68	89	(24%)	(26%)
Asia and Emerging Markets long-term savings		19	19	28	23	185	143	29%	25%
Total worldwide long-term savings		4,051	3,244	318	256	5,949	5,037	18%	18%

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    Canada categories have been revised to align with other business segments. The main changes are that group products are now referred to as corporate and individual products as retail. 

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.

15 months ended 30 June 2013

		PVNBP
	Fee (F) - Spread/risk (S/R)	3 months to 30 Jun 2013	3 months to 31 Mar 2013	3 months to 31 Dec 20121	3 months to 30 Sep 2012	3 months to 30 Jun 2012
		£m	£m	£m	£m	£m
UK
Individual SIPP	F	805	802	666	668	777
Investment bonds	F	29	21	23	23	23
Mutual funds	F	693	614	445	427	462
UK retail new fee business		1,527	1,437	1,134	1,118	1,262
Other individual pensions	F	59	78	49	66	132
Investment bonds	F	1	5	19	11	13
UK retail old fee business		60	83	68	77	145
UK retail fee business		1,587	1,520	1,202	1,195	1,407
Corporate pensions	F	1,499	1,319	690	635	1,058
UK retail and corporate fee business		3,086	2,839	1,892	1,830	2,465
Institutional pensions	F	1,434	1,686	919	1,025	848
UK total fee business		4,520	4,525	2,811	2,855	3,313
Annuities	S/R	94	92	156	106	100
Protection	S/R	1	-	-	-	1
UK long-term savings		4,615	4,617	2,967	2,961	3,414
Europe
Fee	F	504	450	685	401	391
Spread/risk	S/R	7	9	10	8	6
Europe long-term savings		511	459	695	409	397
UK and Europe long-term savings		5,126	5,076	3,662	3,370	3,811
Canada2
Fee	F	189	386	419	421	573
Spread/risk	S/R	43	75	58	7	112
Corporate pensions		232	461	477	428	685
Corporate benefits	S/R	126	135	214	165	137
Retail segregated funds	F	183	198	192	123	166
Retail mutual funds	F	52	66	69	63	66
Retail investment funds		235	264	261	186	232
Retail spread/risk	S/R	45	30	33	40	29
Canada long-term savings		638	890	985	819	1,083
Asia and Emerging Markets
Wholly owned long-term savings	F	117	93	89	47	54
India3		49	190	111	91	70
China3		19	23	18	18	19
Joint ventures long-term savings		68	213	129	109	89
Asia and Emerging Markets long-term savings		185	306	218	156	143
Total worldwide long-term savings		5,949	6,272	4,865	4,345	5,037

¹    The three month period to 31 December 2012 excludes 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.

²    Canada categories have been revised to align with other business segments. The main changes are that group products are now referred to as corporate and individual products as retail. 

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

7  Glossary

Acquisition expenses

Expenses related to the procurement and processing of new business written, including a share of overheads.

Annuity

A periodic payment made for an agreed period of time (usually up to the death of the recipient) in return for a cash sum. The cash sum can be paid as one amount or as a series of premiums. If the annuity commences immediately after the payment of the sum, it is termed an immediate annuity. If it commences at some future date, it is termed a deferred annuity.

Assets under administration (AUA)

A measure of the total assets that the Group administers on behalf of customers and institutional clients. It includes those assets for which the Group provides investment management services, as well as those assets that the Group administers where the customer has made a choice to select an external third party investment manager. Assets under administration reflect the value of the IFRS gross assets of the Group adjusted, where appropriate, for consolidation adjustments, inter-company assets and intangible assets. In addition, the definition includes third party assets administered by the Group which are not included in the consolidated statement of financial position.

Assets under management (AUM)

A measure of the total assets that Standard Life Investments manages on behalf of customers and institutional clients, for which they receive a fee.

Assumptions

Variables applied to data used to project expected outcomes.

Back book management

We choose to analyse our EEV operating profit before tax in the three components which reflect the focus of our business effort - core, efficiency and back book management. Back book management includes all non-expense related operating variances and assumption changes for covered business plus those development costs directly related to back book management initiatives and, for non-covered business, specific costs attributed to back book management.

Board

The board of Directors of the Company.

Burnthrough costs

Burnthrough costs are an estimate of the value of the potential shareholder support that could be required to meet policyholder benefits in a participating fund. It is usually the case that shareholders participate in the profits or surpluses generated within a participating fund only to a limited extent. However, there could be unfavourable outcomes in the future when the assets of the participating fund are no longer sufficient to pay the benefits of the policyholders of that fund. This would be described as a 'burnthrough event' and could require some level of financial support from the shareholder. The burnthrough cost is normally calculated by projecting a large number of possible future economic outcomes, taking an average over all of these outcomes.

Capital resources (CR)

Capital resources include the assets in excess of liabilities, valued on a regulatory basis, and certain other components of capital.

Capital resources requirement (CRR)

A company must hold capital resources in excess of the capital resources requirement. The CRR represents the total of the individual capital resources requirements (ICRR) of each regulated company in the Group.

CFO Forum

A high-level discussion group formed and attended by the Chief Financial Officers of major European listed, and some non-listed, insurance companies.

Company

Standard Life plc.

Constant currency

Eliminates the effects of exchange rate fluctuations and is used when calculating financial performance on a range of measures.

Core

We choose to analyse our EEV operating profit before tax in the three components which reflect the focus of our business effort - core, efficiency and back book management. Core includes new business contribution, expected return and development costs for covered business, excluding those development costs directly related to back book management initiatives and, for non-covered business, operating profit excluding specific costs attributable to back book management.

Covered business
The business covered by the EEV methodology. This should include any contracts that are regarded by local insurance supervisors as long-term or life insurance business and may cover other long-term life insurance, short-term life insurance such as group risk business and long-term accident and health business. Where short-term healthcare is regarded as part of or ancillary to a company's long-term life insurance business, then it may be regarded as long-term business. For covered business within the Standard Life Group please refer to the EEV methodology within the EEV supplementary information.

Deferred acquisition costs (DAC)
The method of accounting whereby acquisition costs on long-term business are deferred in the statement of financial position as an asset and amortised over the life of those contracts. This leads to a smoothed recognition of up front expenses instead of the full cost in the year of sale.

Deferred income reserve (DIR)
The method of accounting whereby front end fees that relate to services to be provided in future periods are deferred in the statement of financial position as a liability and amortised over the life of those contracts. This leads to a smoothed recognition of up front income instead of the full income in the year of sale.   

Development costs 
Costs that are considered to be non-recurring and are reported separately from other expenses in the EEV movement analysis.

Director
A director of the Company.

Discounting 
The reduction to present value at a given date of a future cash transaction at an assumed rate, using a discount factor reflecting the time value of money. The choice of a discount rate will usually greatly influence the value of insurance provisions, and may give indications on the conservatism of provisioning methods. 

Dividend cover
This is a measure of how easily a company can pay its dividend from profit. It is calculated as profit after tax and minority interest divided by the total dividend for that financial period.

Earnings before interest and tax (EBIT)
EBIT is defined as earnings before interest, taxation, foreign exchange gains and losses, profit on partial disposal of investments in associates, divergence on financial guarantee costs, movement on contract for differences and restructuring costs.

EBIT margin
This is an industry measure of performance for investment management companies. It is calculated as EBIT divided by total revenue.

Earnings per share (EPS)
EPS is a commonly used financial metric which can be used to measure the profitability and strength of a company over time. EPS is calculated by dividing profit by the number of ordinary shares. Basic EPS uses the weighted average number of ordinary shares outstanding during the year. Diluted EPS adjusts the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares, for example share awards and share options awarded to employees.

Economic assumptions
Assumptions in relation to future interest rates, investment returns, inflation and tax. These assumptions, and variances in relation to these assumptions, are treated as non-operating profits/(losses) under EEV.

Efficiency
We choose to analyse our EEV operating profit before tax in the three components which reflect the focus of our business effort - core, efficiency and back book management. Efficiency includes covered business variances and assumption changes, which relate to maintenance expenses.

European Embedded Value (EEV)
The value to equity shareholders of the net assets plus the expected future profits on in-force business from a life assurance and pensions business. Prepared in accordance with the EEV Principles and Guidance issued in May 2004 by the CFO Forum and the Additional Guidance issued in October 2005 and the Revised Interim Transitional Guidance issued in September 2012. EEV reports the value of business in-force based on a set of best estimate assumptions, allowing for the impact of uncertainty inherent in future assumptions, the costs of holding required capital, the value of free surplus and TVOG (see TVOG).    

EEV operating profit
Covered business EEV operating profit represents profit generated from new business sales and the in-force book of business, based on closing non-economic and opening economic assumptions.

Non-covered business EEV operating profit represents operating profit.

EEV operating capital and cash generation
This is a measure of the underlying shareholder capital and cash flow of the Group.

Covered business EEV operating capital and cash generation represents the EEV operating profit net worth (free surplus and required capital) on an after-tax basis.

Non-covered business EEV operating capital and cash generation represents non-covered operating profit after tax.

Executive team
The executive team is responsible for the day-to-day running of the Group and comprises: the Chief Executive, Chief Executive - UK and Europe, President and Chief Executive Officer - Canada, Chief Executive - Standard Life Investments, the Group Company Secretary and General Counsel, the Group Operations Officer, Chief Financial Officer and the Chief Risk Officer.

Expected return on EEV
Anticipated results based on applying opening assumptions to the opening EEV.

Experience variances
Current period differences between the actual experience incurred over the period and the assumptions used in the calculation of the embedded value, excluding new business non-economic experience variances which are captured in new business contribution.

Fee based business
Fee based business is a component of operating profit and is made up of products where we generate revenue primarily from asset management charges (AMCs), premium based charges and transactional charges. AMCs are earned on products such as SIPP, corporate pensions and mutual funds, and are calculated as a percentage fee based on the assets held. Investment risk on these products rests principally with the customer, with the major indirect Group exposure to rising or falling markets coming from higher or lower AMCs.

Financial options and guarantees
Terms relating to covered business conferring potentially valuable guarantees underlying, or options to change, the level and nature of policyholder benefits and exercisable at the discretion of the policyholder, whose potential value is impacted by the behaviour of financial variables.

Free surplus
The amount of capital and any surplus allocated to, but not required to support, the in-force business covered by the EEV.

Global Absolute Return Strategy (GARS)
A discretionary multi-asset fund provided under several regulated pooled and segregated structures globally by Standard Life Investments. Their investment objective is to deliver consistent positive returns at a level exceeding the risk-free rate by an average of 5% per annum, and to do so with as little risk as possible.

Group capital surplus
This is a regulatory measure of our financial strength and compares the Group's capital resources to its capital resources requirements in accordance with the Insurance Groups Directive.

Group, Standard Life Group or Standard Life
Prior to demutualisation on 10 July 2006, SLAC and its subsidiaries and, from demutualisation on 10 July 2006, the Company and its subsidiaries.

Heritage With Profits Fund (HWPF)
The Heritage With Profits Fund contains all existing business - both with profits and non profit - written before demutualisation in the UK, Irish or German branches, with the exception of the classes of business which the Scheme of Demutualisation allocated to the Proprietary Business Fund. This HWPF also contains increments to existing business. 

Individual Capital Assessment (ICA)
The process by which the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) requires insurance companies to make an assessment of the regulated company's own capital requirements, which is then reviewed and agreed by the FCA and PRA.

In-force 
Long-term business which has been written before the period end and which has not terminated before the period end.

Internal rate of return (IRR)
A measure of rate of return on an investment and so an indicator of capital efficiency. The IRR is equivalent to the discount rate at which the present value of the after-tax cash flows expected to be earned over the lifetime of new business written is equal to the capital invested to support the writing of the business.

International Financial Reporting Standards (IFRS)
International Financial Reporting Standards are accounting standards issued by the International Accounting Standards Board (IASB). The Group's consolidated financial statements are required to be prepared in accordance with IFRS.

Investment grade 
Debt securities with a credit rating of BBB or higher.

Key performance indicators (KPI)
This is a measure by reference to which the development, performance or position of the business can be measured effectively.

Look through
EEV covered business profits include the profits and losses arising in Group companies providing investment management and other services, where these relate to covered business. This is referred to as the 'look through' into service companies.

Maintenance expenses
Expenses related to the servicing of the in-force book of business (including investment management and termination expenses and a share of overheads).

Mutual fund
A collective investment vehicle enabling investors to pool their money, which is then invested in a diverse portfolio of stocks or bonds, enabling investors to achieve a more diversified portfolio than they otherwise might have done by making an individual investment. 

Net flows
Net flows represent gross inflows less redemptions. For long-term savings business, gross inflows are premiums and deposits recognised in the period on a regulatory basis (excluding any switches between funds). Redemptions are claims and annuity payments (excluding any reinsurance transactions and switches between funds).

Net worth
The market value of shareholders' funds and the shareholders' interest in the surplus held in the non profit component of the long-term business funds, determined on a statutory solvency basis and adjusted to add back any non-admissible assets per regulatory returns.

New business contribution (NBC)
The expected present value of all future cash flows attributable to the equity holder from new business, as included within EEV operating profit.

New business strain (NBS)
Costs involved in acquiring new business (such as commission payments to intermediaries, expenses, reserves) affecting the insurance company's financial position at that point and where all of the income from that new business (including premiums and investment income) has not yet been received and will not be received until a point in the future. To begin with, therefore, a strain may be created where cash outflows exceed inflows.

NBS margin 
New business strain as a percentage of PVNBP sales (see PVNBP). 

Non-covered business
Mainly includes Standard Life Investments third party and other businesses not associated with the life assurance and pensions business. Non-covered business excludes Standard Life Investments look through profits and the return on mutual funds which are recognised in covered business. Non-covered business is excluded from the EEV methodology and is included within the Group EEV on an IFRS basis.

Non-economic assumptions
Assumptions in relation to future levels of mortality, morbidity, persistency and expenses. These assumptions, and variances in relation to these assumptions, are included as operating profits/(losses) under EEV.

Non-participating/non-profit policy
A policy, including a unit linked policy, which is not a participating/with profits policy.

Operating profit
The Group's chosen supplementary measure of performance is operating profit. This is a non-Generally Accepted Accounting Principles (GAAP) measure. Operating profit excludes impacts arising from short-term fluctuations in investment return and economic assumption changes. It is calculated based on expected returns on investments backing equity holder funds, with consistent allowance for the corresponding expected movements in equity holder liabilities. Impacts arising from the difference between the expected return and actual return on investments, and the corresponding impact on equity holder liabilities except where they are directly related to a significant management action, are excluded from operating profit and are presented within profit before tax. The impact of certain changes in economic assumptions is also excluded from operating profit and is presented within profit before tax.

Operating profit also excludes the impact of the following items:

·   Restructuring costs and significant corporate transaction expenses
·   Impairment of intangible assets
·   Profit or loss arising on the disposal of a subsidiary, joint venture or associate
·   Amortisation of intangibles acquired in business combinations
·   Items which are one-off in nature and outside the control of management and which, due to their size or nature, are not indicative of the  
     long-term operating performance of the Group

Participating/with profits policy
A policy where, in addition to guaranteed benefits specified in the policy, additional bonuses may be payable from relevant surplus. The declaration of such bonuses (usually annually) reflects, amongst other things, the overall investment performance of the fund of which the policy forms part.

Personal pension plan
An individual pension arrangement with particular tax advantages whereby individuals who are self-employed or those who are not members of employer-sponsored pension scheme arrangements can make provision for retirement or provide benefits for their dependents in a tax efficient manner.

Present value of in-force business (PVIF)
The present value of the projected future distributable profits after tax attributable to equity holders from the covered business
in-force at the valuation date, adjusted where appropriate to take account of TVOG (see TVOG).

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

Profit contribution
Profit contribution reflects the income and expenses directly attributable to each of the UK lines of business. It differs from operating profit due to the exclusion of indirect expenses, such as overheads, and capital management.

Proprietary Business Fund
The Proprietary Business Fund in Standard Life Assurance Limited (SLAL) contains, among other things, certain classes of business - pension contribution insurance policies, income protection plan policies and a number of SIPP policies written before demutualisation, as well as most new insurance business written after demutualisation in the UK, Ireland and Germany.

PVNBP margin
PVNBP margin is NBC expressed as a percentage of PVNBP.

Recourse cash flow (RCF)
Certain cash flows arising in the HWPF on specified blocks of UK and Irish business, which are transferred out of the fund on a monthly basis and accrue to the ultimate benefit of equity holders, as determined by the Scheme of Demutualisation.

Regular premium
A regular premium contract (as opposed to a single premium contract), is one where the policyholder agrees at inception to make regular payments throughout the term of the contract.

Required capital 
The amount of assets, over and above the value placed on liabilities in respect of covered business, whose distribution to equity holders is restricted.

Return on equity (RoE)
The annualised post-tax profit on an IFRS basis expressed as a percentage of the opening IFRS equity, adjusted for time apportioned dividends paid to equity holders. Operating RoE is based on operating profit after tax and total RoE is based on IFRS profit after tax attributable to equity holders.

Return on EEV (RoEV)
The annualised post-tax operating profit on an EEV basis expressed as a percentage of the opening embedded value, adjusted for time apportioned dividends paid to equity holders.

Scheme of Demutualisation (the Scheme)
The scheme pursuant to Part VII of, and Schedule 12 to, the Financial Services and Markets Act 2000, under which substantially all of the long-term business of SLAC was transferred to Standard Life Assurance Limited on 10 July 2006.  

SICAV
A SICAV (société d'investissement à capital variable) is an open-ended collective investment scheme common in Western Europe. SICAVs can be cross-border marketed in the EU under the Undertakings for Collective Investment in Transferable Securities (UCITS) directive.

Single premium
A single premium contract (as opposed to a regular premium contract), involves the payment of one premium at inception with no obligation for the policyholder to make subsequent additional payments.

SIPP
A self invested personal pension which provides the policyholder with greater choice and flexibility as to the range of investments made, how those investments are managed, the administration of those assets and how retirement benefits are taken.

SLAC
The Standard Life Assurance Company (renamed The Standard Life Assurance Company 2006 on 10 July 2006).

SLAL
Standard Life Assurance Limited.

Spread/risk based business
Spread/risk based business is a component of operating profit and mainly comprises products where we provide a guaranteed level of income for our customers in return for an investment. A good example of this product line is annuities. The 'spread' referred to in the title primarily relates to the difference between the guaranteed amount we pay to customers and the actual return on the assets over the period of the contract.

Spread/risk margin
Spread/risk margin reflects the margin earned on spread/risk business. This includes net earned premiums, claims and benefits paid, net investment return using long-term assumptions and reserving changes.

Time value of options and guarantees (TVOG)
Represents the potential additional cost to equity holders where a financial option or guarantee exists which affects policyholder benefits and is exercisable at the option of the policyholder.

Total shareholder return
This is a measure of the overall return to shareholders and includes the movement in the share price and any dividends paid and reinvested.

UK corporate
UK corporate provides workplace pensions, savings and benefits to UK employers and employees. These are sold through Corporate Benefit Consultants, independent financial advisors or directly with employers.

UK retail
This relates to business where we have a relationship with the customer either directly or through an independent financial adviser. We analyse this type of business into new and old categories. Retail new includes the products, platforms, investment solutions and services of our UK retail business that we continue to market actively to our customers. Retail old includes business that was predominantly written before demutualisation.

Undiscounted payback period
A measure of capital efficiency that measures the time at which the value of expected undiscounted cash flows (after tax) is sufficient to recover the capital invested to support the writing of new business. 

Unit linked policy
A policy where the benefits are determined by reference to the investment performance of a specified pool of assets referred to as the unit linked fund.

Wrap platform
An investment platform which is essentially a trading platform enabling investment funds, pensions, direct equity holdings and some life assurance contracts to be held in the same administrative account rather than as separate holdings.

8  Shareholder information

Registered office

Company registration number: SC286832

Standard Life House

30 Lothian Road

Edinburgh

EH1 2DH

Scotland

Phone: [phone] or 0131 225 2552

For shareholder services call 0845 113 0045

Registrar

Capita Registrars Limited

Auditors

PricewaterhouseCoopers LLP

Solicitors

Slaughter and May

Brokers

JP Morgan Cazenove

Deutsche Bank

Shareholder services

We offer a wide range of shareholder services, some details of which are set out below. If you need any further information about any of these services, please:

·   contact our registrar, Capita, on 0845 113 0045 if calling from the UK. International numbers for Capita can be found on the last page of this report

·   visit our share portal at www.standardlifeshareportal.com

Sign up for ecommunications

You can choose to receive your shareholder communications electronically. Just go to www.standardlife.com/shareholders to find out how. Signing up means:

·   you'll receive an email when documents like the Annual Report and Accounts and AGM guide are available on our website. You can then read these online in an easy-to-use, searchable format instead of receiving paper copies in the post.

·   voting instructions for the Annual General Meeting will be sent to you electronically

Set up a share portal account

Just go to www.standardlifeshareportal.com to find out how.  Having a share portal account means you can:

·      manage your account at a time that suits you

·      download your dividend tax vouchers when you need them

·      view your Standard Life Share Account statement  

Preventing unsolicited mail

By law, the Company has to make certain details from its share register publicly available. Because of this, it is possible that some registered shareholders could receive unsolicited mail or phone calls. You could also be targeted by fraudulent 'investment specialists'. Remember, if it sounds too good to be true, it probably is. You can find more information about share scams at the Financial Conduct Authority website www.fca.org.uk/consumers/scams

If you are a certificated shareholder, your name and address may appear on a public register. Using a nominee company to hold your shares can help protect your privacy. You can transfer your shares into the Company-sponsored nominee - the Standard Life Share Account - by contacting Capita, or you could get in touch with your broker to find out about their nominee services.

If you want to limit the amount of unsolicited mail you receive generally, please contact:

Mailing Preference Service (MPS)

DMA House

70 Margaret Street

London

W1W 8SS 

You can also register online at www.mpsonline.org.uk

Analysis of registered shareholdings as at 30 June 2013

Range of shares	Number of holders	% of total holders	Number of shares	% of total shares
1-1,000	58,949	54.47	27,545,601	1.16
1,001-5,000	42,542	39.31	90,035,794	3.79
5,001-10,000	4,050	3.74	27,162,504	1.14
10,001-100,000	2,157	1.99	50,046,206	2.11
*100,001+	524	0.49	2,181,572,964	91.80
Total	108,222	100	2,376,363,069	100

*    These figures include the Company-sponsored nominee - the Standard Life Share Account - which had 1,154,973 participants holding 958,864,438  shares, and the Unclaimed Asset Trust, which had 73,254 participants holding 27,415,941 shares.

Financial calendar for 2013

Ex-dividend date for 2013 interim dividend	11 September 2013
Record date for 2013 interim dividend	13 September 2013
Last date for DRIP elections for 2013 interim dividend	2 October 2013
Interim dividend payment date	29 October 2013
2013 Q3 trading results and interim management statement	30 October 2013

Contact details

We want to make sure you have answers to all your questions.

UK and Ireland If you have any questions about voting at the Annual General Meeting, dividends or your shareholding, please contact our registrar:	www.standardlifeshareportal.com	[e-mail] Address: Standard Life Shareholder Services 34 Beckenham Road Beckenham Kent BR3 4TU	0845 113 0045 [phone] [phone]
Germany and Austria If you have any questions about voting at the Annual General Meeting, dividends or your shareholding, please contact our registrar:	www.standardlifeshareportal.com/de	[e-mail] Address: Standard Life Aktionärsservice Postfach 20 01 43 60605 Frankfurt am Main Germany	[phone]
Canada If you have any questions about voting at the Annual General Meeting, dividends or your shareholding, please contact our registrar:	www.standardlifeshareportal.com (English) www.standardlifeshareportal.com/fr (French)	[e-mail] Address: Standard Life Shareholder Services PO Box 4636 Station A Toronto M5W 7A4	1-866-982-9939

 

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