New Business Results
Standard Life plc
08 November 2006
Standard Life plc
New business results - nine months to 30 September 2006
8 November 2006
• Worldwide insurance APE1 sales up 26% to £1,119m (2005: £890m) year to
date, with a 41% increase in the third quarter of 2006.
• UK Life and Pensions APE sales up 35% to £921m (2005: £684m) year to date,
with a 56% increase in the third quarter of 2006.
- Self Invested Personal Pension (SIPP) and drawdown APE sales up 109%
to £182m (2005: £87m).
- Investment bond APE sales up 81% to £132m (2005: £73m).
• Lapses in UK pensions continue above the long-term trend, as reflected in
the provisions made at the half year.
• Third party funds under management up to £34.7bn (31 December 2005:
£29.1bn2, 30 June 2006: £32.5bn2).
All comparisons above and in narrative below are in sterling unless otherwise
stated3. All sales figures below are on an APE basis unless otherwise stated.
Group Chief Executive, Sandy Crombie, commented:
'I am pleased to report Standard Life's worldwide new business sales have shown
accelerated growth in the first three quarters of 2006.
'UK Life and Pensions sales in the first 9 months of 2006 exceeded the 2005
calendar year total with SIPP and Investment Bonds continuing to lead the way.
A-day has had a significant positive impact on new business and I am confident
we will continue to be one of the net winners with our SIPP product, which
enjoyed its strongest ever month for sales in September. Our performance has
been built on our first class service, strong suite of products and deep
relationships with intermediaries.
'Continued excellent investment performance by Standard Life Investments has
helped us to grow our third party funds under management by 19%2 since the end
of 2005.
'Our progress since listing as a public company reaffirms our confidence in our
future business prospects.'
UK and Europe Life and Pensions
UK Life and Pensions sales for the first nine months increased by 35% to £921m
(2005: £684m), which surpassed the 2005 full year total of £908m. This was
assisted by a 56% increase in third quarter sales to £327m (2005: £209m). Sales
on a PVNBP4 basis were £6,923m for the first nine months of 2006 which also
exceeded the 2005 calendar year total of £6,455m. PVNBP sales for the third
quarter were £2,593m.
Consistent with our focus on profitable areas of the market, sales growth
continues to be driven by single premium business, which has increased 60%
compared with regular premium growth of 10% for the year to date. While SIPP,
Investment Bonds and TIP5/PPIP6 have performed particularly well, every product
line in the UK Life and Pensions suite has seen an increase in sales. Our UK
business continues to benefit from our market leadership in SIPP and the
heightened activity in the pensions market due to A-day.
Sales of SIPP & Drawdown7 in the first nine months of 2006 increased 109% to
£182m (2005: £87m). Third quarter sales increased 181% to £76m (2005: £27m) as
our early mover advantage allowed us to capitalise on a growing SIPP market.
SIPP experienced its strongest ever month for new business in September 2006
with APE sales of £27m. At 30 September 2006, SIPP assets under management,
including both insured and non-insured SIPP, were £3.4bn compared to £1.3bn at
31 December 2005. The average SIPP case size was £163,000 at 30 September 2006
with 85% of single premium sales into SIPP in the third quarter representing new
inflows to the company.
We expect SIPP to be the vehicle of choice for consolidation in the UK pensions
market. Our experience and reputation for service mean we are confident we will
continue to be a major beneficiary of the growth in this market. In October
2006 we were pleased to announce we have been added to a select list of SIPP
providers for the administration of Life and Pensions business written by UBS.
Net pensions' inflows8 continued to be positive during the third quarter
although there remains uncertainty around the long-term effects of the A-day
reforms on customer behaviour. In pensions, lapses continue above the long-term
trend, as reflected in the provisions made at the half year. We continue to
monitor carefully the current level of lapses.
Group Pensions remains the largest single product by APE sales volume in our UK
Life and Pensions business. Sales totalled £337m for the first nine months of
the year (2005: £314m). The third quarter was particularly strong with sales
increasing 35% to £109m (2005: £81m). The year-to-date increase can be
attributed to the introduction of Group SIPP where there have been total sales
of £34m since launch in January 2006.
Investment performance has been the key driver for higher sales of Investment
Bonds, TIP and PPIP. Investment Bonds increased 81% to £132m (2005: £73m) while
TIP and PPIP rose 58% to £123m (2005: £78m). As previously announced Standard
Life will provide Citigroup with the investment platform for four defined
contribution pension schemes. We expect to include over £80m of APE for this
mandate in our fourth quarter sales.
Annuity sales increased 33% to £32m (2005: £24m) as business was received from
consumers who had deferred retirement until after A-Day and our demutualisation.
Over 90% of annuity sales in the first nine months of 2006 came from customers
with maturing Standard Life pensions.
Standard Life Germany sales for the nine months to 30 September 2006 were 39%
lower in local currency at £31m (2005: £51m), reflecting the exceptional sales
in the first quarter of 2005 caused by changes to domestic tax legislation. The
third quarter 2006 German result shows an improving picture with sales
increasing 13% in local currency to £11m (2005: £9m). In October 2006 Standard
Life Germany launched a new unit linked product.
Standard Life Ireland sales for the nine months to 30 September 2006 were 59%
higher in local currency at £27m (2005: £17m) following the continued success of
the Synergy suite of products launched in 2005 and the introduction of new
products based on the UK SIPP platform this year.
Canadian Life and Pensions
Sales in Canada for the first nine months of 2006 declined 7% in local currency
to £121m (2005: £119m) following the management actions to reorientate towards
profitable lines.
We continue to target the Group Savings and Retirement market where we witnessed
a 32% increase in year to date sales in local currency to £72m (2005: £50m).
However, sales volumes in the third quarter decreased 15% in local currency to
£11m (2005: £14m). This market is currently characterised by reduced quote
activity as the industry focuses on retention of the existing client base.
Individual Insurance, Savings and Retirement sales were 33% lower in local
currency at £38m (2005: £51m) following the repricing of our main universal life
product in 2005.
Group Insurance sales were 41% lower in local currency at £11m (2005: £18m) in a
market impacted by lower average case sizes and aggressive pricing.
We expect sales will recover in the fourth quarter. In October we secured
significant schemes in Group Savings and Retirement and Group Insurance.
Asia
In India, Standard Life has two joint venture partnerships with HDFC: a life
insurance company HDFC Standard Life Insurance Limited, in which it holds 18.6%,
as at 30 September 2006, and HDFC Asset Management Company, in which it holds
49.9%. Standard Life's holding in HDFC Standard Life Insurance Limited changed
during 2006 and the results for the period to 30 September 2006 are based on a
weighted average holding of 17.7% (9 months to 30 September 2005: 26.0%). Sales
for HDFC Standard Life Insurance Company Limited increased 54%9 to £99m (2005:
£65m) of which Standard Life's share was £17m (2005: £17m).
In China, Heng An Standard Life is making encouraging progress and in October
2006 opened a new branch office in Jiangsu province; the largest insurance
market in mainland China.
Standard Life Investments (SLI)
Continued investment outperformance, which has driven further mandate wins, and
improving equity markets have seen SLI's total funds under management increase
to £129.7bn at the end of the third quarter of 2006. Third party funds under
management have increased by an underlying 19%2 from £29.1bn2 at the end of 2005
to £34.7bn at the end of the third quarter in 2006.
The majority of this growth is due to net third party inflows of £3,886m which
equates to over 13% of Third party funds under management at the start of year.
Within this, net inflows for investment products were £3,121m (2005: £3,521m).
SLI is experiencing its strongest year for mutual fund sales since SLI was
launched in 1998, with net inflows of £920m for the first nine months of the
year. Net inflows in the third quarter were £236m, building on the sales
momentum generated during the first half of the year.
In October 2006, SLI announced that the Select Property Fund had grown to £780m
in the 12 months since its launch, making it one of the fastest growing retail
funds launched in the UK over that period.
Standard Life Healthcare (SLH)
SLH's continued focus on writing profitable SME10 business, and the competitive
pressures in that market, resulted in sales of £15m for the first nine months of
2006 comparable to the corresponding period in 2005. Third quarter sales of £5m
were also in line with last year.
Standard Life Bank (SLB)
The UK fixed rate mortgage market was highly competitive in the first half of
2006 and this, coupled with a continued focus on profitability rather than
volume, resulted in a fall in gross mortgage lending for the nine months to 30
September 2006 of 8% to £2,111m (2005: £2,290m). However sales volumes improved
in the third quarter of 2006 and lending for that period increased 6% to £895m
(2005: £848m).
Mortgages under management were £10.3bn at 30 September compared to £10.6bn at
31 December 2005. At the end of the third quarter 2006 arrears rates continue
to be significantly lower than the industry average at 16bps (30 June 2006:
17bps).
Savings balances grew in the 9 month period to £4,175m (31 December 2005:
£4,119m) largely due to a growth in SIPP cash deposits to £228m (31 December
2005: £82m).
For further information please contact:
Media:
Scott White 0131 245 5422 / 07712 485 738
Barry Cameron 0131 245 6165 / 07712 486 463
Emma Wylie 0207 872 4154 / 07712 486 444
Neil Bennett (Maitland) 0207 379 5151 / 07900 000 777
Equity Investors:
Gordon Aitken 0131 245 6799
Conor O'Neill 0131 245 6466
Gillian Bailey 0131 245 1110
Debt Investors:
John Cummins 0131 245 5195
Georgina Marshall 0131 245 9798
Notes to Editors
1. Annual Premium Equivalent (APE) sales comprise new regular premium sales
plus 10% of single premiums.
2. During the third quarter 2006 SLI reclassified £1.0bn of investments from
Insurance funds under management to Third party funds under management.
These investments represent both traditional mutual funds and individual
segregated funds, which are similar to mutual funds but backed by a 75%
capital guarantee and are now included within Third party insurance
contracts. This reclassification has been reflected in the 'Market & other
movements' column in the tables on pages 11 and 14. The effect of
restating Third party funds under management would be an increase from
£28.1bn to £29.1bn at 31 December 2005 and an increase from £31.5bn to
£32.5bn at 30 June 2006. Allowing for this restatement the growth in Third
party funds under management in the 9 months to 30 September 2006 was 19%.
There has been no impact to Total funds under management.
3. All percentage changes shown for new business are calculated in sterling.
The principal average exchange rates for nine months to 30 September 2006
are £1: C$2.05 (nine months to 30 September 2005 £1: C$2.25) and £1:€1.46
(nine months to 30 September 2005 £1: €1.46). Funds under management are
calculated using the closing exchange rate as at period end. The principal
closing exchange rates used as at 30 September 2006 are £1: C$2.08 (31
December 2005 £1: C$2.01) and £1: €1.47 (31 December 2005 £1: €1.46).
4. Present Value of New Business Premiums (PVNBP) is calculated as 100% of
single premiums plus the expected present value of new regular premiums.
5. TIP is a Trustee Investment Plan designed to meet the needs of Trustees of
exempt approved occupational pension schemes (defined benefit, defined
contribution and SSAS schemes).
6. PPIP is a Personal Pension Investment Plan. It is a version of TIP
available to managers of Self Invested Personal Pensions (SIPP) that are
administered externally to Standard Life.
7. Of the £182m APE sales of insured SIPP & Drawdown written in the 9 month
period to 30 September 2006, £165m is insured SIPP sales and £17m Drawdown
sales.
8. Net pensions' inflows are defined as total premiums and deposits less total
claims (including deaths, surrenders and maturities) for Individual
Pensions, SIPP & Drawdown and Group Pensions products.
9. The growth percentages quoted for India relate to the results of HDFC
Standard Life Insurance Limited, rather than the growth in Standard Life's
share of the joint ventures new business.
10. SME is defined as small and medium enterprises.
11. All financial information in this release is unaudited.
12. The insurance operations new business shown within the attached tables
includes certain products which do not fall within the scope of 'insurance
contracts' as defined by IFRS4 'Insurance Contracts' as they do not contain
sufficient insurance risk. However, the classification of products into
investment or insurance operations is consistent with previous new business
reports and is in accordance with FSA recognition rules for new business.
13. All comparators are with the first nine months or the comparable third
quarter of 2005 unless otherwise stated.
14. Department of Work and Pensions (DWP) rebate premiums of £26m APE (2005:
£10m) have been received in the 9 month period to 30 September 2006. Of
this total, £19m APE (2005: £8m) was received in the third quarter.
15. All 2006 sales figures span the demutualisation of The Standard Life
Assurance Company on 10 July 2006.
16. There will be a conference call today for newswires at 7.30am (BST) hosted
by Sandy Crombie, Group Chief Executive and Trevor Matthews, Chief
Executive of Standard Life Assurance Limited. Dial in telephone number:
+44 (0) 20 7162 0125. Callers should quote Standard Life Newswire
Conference Call.
17. There will be a conference call for investors and analysts at 8.30am (BST)
hosted by Sandy Crombie, Group Chief Executive and Trevor Matthews, Chief
Executive of Standard Life Assurance Limited. Dial in telephone number
+44 (0) 20 7162 0025. Callers should quote Standard Life Investor and
Analyst Conference. A recording of this call will be available for replay
for one week by dialling +44 (0)207 031 4064. The conference reference
number will be 723285.
Standard Life New Business Summary
9 month period ended 30 September 2006
Insurance Products PVNBP (a) APE (b)
9 months to 12 months to 31 9 months to 30 9 months to 30 12 months to
30 September December September September 31 December
2006 2005 2006 2005 2005
£m £m £m £m £m
UK
Pensions 5,221 4,987 748 582 758
Life 1,348 1,131 136 74 114
Annuities 320 295 32 24 30
Protection 34 42 5 4 6
UK Life and Pensions 6,923 6,455 921 684 908
Europe
Republic of Ireland 196 243 27 17 34
Germany 325 677 31 51 66
European Insurance 521 920 58 68 100
Canada
Group savings and retirement 820 1,033 72 50 89
Individual insurance, savings 348 565 38 51 71
and retirement
Group insurance 85 284 11 18 24
Canadian Insurance 1,253 1,882 121 119 184
Asia Pacific
India 124 94 17 17 23
China 15 7 2 0 1
Asia Pacific Insurance 139 101 19 17 24
Discontinued operations (c) 0 9 0 2 2
Total Worldwide 8,836 9,367 1,119 890 1,218
Insurance
Investment Products Gross Inflows Net Inflows
9 months to 9 months to 12 months to 31 9 months to 30 9 months to 30 12 months to
30 September 30 September December September September 31 December
2006 2005 2005 2006 2005 2005
£m £m £m £m £m £m
UK (d) 3,374 3,832 5,551 2,849 3,515 4,944
Canada 290 295 399 72 (72) (41)
International (e) 390 78 (33) 200 78 (35)
Total Worldwide 4,054 4,205 5,917 3,121 3,521 4,868
Investment products
Banking Gross Mortgage Lending
9 months to 30 9 months to 30 12 months to
September September 31 December
2006 2005 2005
£m £m £m
Gross Mortgage 2,111 2,290 3,092
Lending
SL Healthcare New Business Sales
9 months to 30 9 months to 30 12 months to
September September 31 December
2006 2005 2005
£m £m £m
New business sales 15 15 20
(a) Present Value of New Business Premiums (PVNBP) is a measure of insurance
sales calculated using the EEV methodology. It represents total single
premiums received during the period plus the discounted value of premiums
expected to be received over the term of new regular premiums contracts.
(b) Annual Premium Equivalent (APE) represents all new regular premiums and
10% of single premiums.
(c) Spanish business is shown as discontinued operations as it was disposed of
in 2005.
(d) The Triple A fund within UK Investment sales is calculated using average
net client balances.
(e) Due to the nature of the Indian investment sales market, Indian new
business is shown as net of sales less redemptions.
Insurance Operations New Business - APE
9 month period ended 30 September 2006
Single Premiums New Regular Premiums Annual Premium Equivalents (APE)
Analysed by 9 9 % 9 9 % 9 9 % % Change
geographical months months Change months months Change months months Change in local
region to to 30 to 30 to 30 to 30 to 30 currency
30 Sep Sep Sep Sep Sep Sep (a)
2006 2005 2006 2005 2006 2005
£m £m £m £m £m £m
UK
Individual 616 547 13% 45 48 (6%) 106 103 3% 3%
Pensions
SIPP & 1,455 780 87% 36 10 260% 182 87 109% 109%
Drawdown
Group 415 283 47% 296 286 3% 337 314 7% 7%
Pensions
Investments 1,231 781 58% 0 0 0% 123 78 58% 58%
(TIP and
PPIP)
Pensions 3,717 2,391 55% 377 344 10% 748 582 29% 29%
Investment 1,321 731 81% 0 0 0% 132 73 81% 81%
Bonds
Offshore 26 0 N/A 0 0 0% 3 0 N/A N/A
Bond
Other 2 1 100% 1 0 N/A 1 1 0% 0%
Life 1,349 732 84% 1 0 N/A 136 74 84% 84%
Annuities 320 245 31% 0 0 0% 32 24 33% 33%
Protection 0 0 0% 5 4 25% 5 4 25% 25%
UK Life and 5,386 3,368 60% 383 348 10% 921 684 35% 35%
Pensions
Europe
Republic of 153 91 68% 12 8 50% 27 17 59% 59%
Ireland
Germany 24 27 (11%) 28 48 (42%) 31 51 (39%) (39%)
European 177 118 50% 40 56 (29%) 58 68 (15%) (15%)
Insurance
Canada
Group 475 284 67% 25 22 14% 72 50 44% 32%
savings and
retirement
Individual 316 333 (5%) 6 18 (67%) 38 51 (25%) (33%)
insurance,
savings and
retirement
Group 0 3 N/A 11 17 (35%) 11 18 (39%) (41%)
insurance
Canadian 791 620 28% 42 57 (26%) 121 119 2% (7%)
Insurance
Asia
India (c) 5 5 44% (b) 17 17 50% (b) 17 17 52% (b) 54%
China (c) 10 3 233% 1 0 N/A 2 0 N/A 294%
Asia 15 8 88% 18 17 6% 19 17 12% 55%
Insurance
Discontinued 0 5 N/A 0 1 N/A 0 2 N/A N/A
operations
(d)
Total 6,369 4,119 55% 483 479 1% 1,119 890 26% 24%
Worldwide
Insurance
a) The percentage change in local currency is calculated using constant rates
of exchange.
b) The percentage change figures for India are computed based on the
percentage movement in the new business of HDFC Standard Life Limited to
avoid distortion due to changes in the Group's shareholding in the joint
venture during 2005 and 2006.
c) Amounts shown reflect Standard Life's share of the Joint Venture Company's
New Business.
d) Spanish business is shown as discontinued operations as it was disposed of
in 2005.
Investment Operations
9 month period ended 30 September 2006
Opening Gross Redemptions Net Market & Net Closing
FUM Sales £m Inflows other movement FUM
01/01/2006 £m £m movements in FUM 30/09/2006
£m £m £m £m
UK Mutual 2,862 1,211 (a) (291) 920 222 1,142 4,004
Funds
Private 1,580 206 (38) 168 5 173 1,753
Equity
Segregated 5,915 1,174 (b) (196) 978 627 1,605 7,520
Funds
Pooled 438 76 (b) 0 76 23 99 537
Property
Funds
Triple A 4,421 707 (c) 0 707 (75) 632 5,053
Total UK 15,216 3,374 (525) 2,849 802 3,651 18,867
Canada Mutual 1,019 239 (d) (112) 127 43 170 1,189
Fund
Separate 976 51 (106) (55) 151 96 1,072
Mandates
(e)
Total Canada 1,995 290 (218) 72 194 266 2,261
International Europe 29 6 (6) 0 (4) (4) 25
Hong Kong 175 26 (184) (158) 11 (147) 28
India 1,137 358 (f) 0 358 (8) 350 1,487
Total International 1,341 390 (190) 200 (1) 199 1,540
Total Worldwide 18,552 4,054 (933) 3,121 995 4,116 22,668
Investment Products
Total third party funds 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 funds under management is shown below.
Standard Life Investments
Opening Gross Redemptions Net Market & Net Closing
FUM inflows £m Inflows other movement FUM
01/01/2006 £m £m movements in FUM 30/09/2006
£m £m £m £m
Investment 18,552 4,054 (933) 3,121 995 4,116 22,668
products
Third party insurance 9,577 1,739 (974) 765 1,725 2,490 12,067
contracts (new
business classified as
insurance products)(g)
Third party funds 28,129 5,793 (1,907) 3,886 2,720 6,606 34,735
under management
Standard Life 118,842 129,717
Investments - total
funds under
management
(a) UK Mutual Fund gross sales were £378m and net inflows were £148m in the 9
months to 30 September 2005.
(b) Institutional sales comprise Segregated and Pooled Property Fund sales.
(c) Due to the nature of the Triple A fund the inflows shown 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 FUM.
(d) Canadian Mutual Funds gross sales were £228m and net inflows were £172m in
the 9 months to 30 September 2005.
(e) 'Separate Mandates' (previously called Investment Counselling) refers to
investment funds products sold in Canada exclusively to institutional
customers. These products contain no insurance risk and consist primarily
of defined benefit pension plan assets for which SLI exclusively provides
portfolio advisory services.
(f) As a result of the sales market volatility in India, Investment sales are
shown as net of sales less redemptions.
(g) During the third quarter 2006 SLI reclassified £1.0bn of investments from
Insurance funds under management to Third party funds under management.
These investments represent individual segregated funds,which are similar
to mutual funds but backed by a 75% capital guarantee and are now included
within Third party Insurance contracts. This reclassification has been
reflected in the Market & other movements column (see notes to editor, note
2 for further details)
Standard Life New Business Summary
3 month period ended 30 September 2006
Insurance Products PVNBP (a) APE (b)
3 months to 12 months 3 months to 3 months to 12 months
30 September to 31 30 30 to 31
2006 December September September December
2005 2006 2005 2005
UK £m £m £m £m £m
Pensions 1,972 4,987 263 166 758
Life 459 1,131 46 34 114
Annuities 152 295 16 7 30
Protection 10 42 2 2 6
UK Life and Pensions 2,593 6,455 327 209 908
Europe
Republic of Ireland 65 243 9 6 34
Germany 116 677 11 9 66
European Insurance 181 920 20 15 100
Canada
Group savings and 127 1,033 11 14 89
retirement
Individual insurance, savings and 84 565 9 16 71
retirements
Group insurance 17 284 2 6 24
Canadian Insurance 228 1,882 22 36 184
Asia
India 67 94 5 6 23
China 4 7 1 0 1
Asia Insurance 71 101 6 6 24
Discontinued 0 9 0 0 2
operations (c)
Total Worldwide 3,073 9,367 375 266 1,218
Insurance
Investment Products Gross Inflows Net Inflows
3 months to 30 3 months to 12 months 3 months to 3 months to 12 months
30 September to 31 30 30 to 31
September 2006 2005 December September September December
2005 2006 2005 2005
£m £m £m £m £m £m
UK (d) 232 875 5,551 50 782 4,944
Canada 60 89 399 (18) 27 (41)
International (e) (31) 69 (33) (31) 69 (35)
Total Worldwide 261 1,033 5,917 1 878 4,868
Investment products
Banking Gross Mortgage Lending
3 months to 3 months to 12 months to
30 30 31 December
September September 2005
2006 2005
£m £m £m
Gross Mortgage Lending 895 848 3,092
SL Healthcare New Business Sales
3 months to 3 months to 12 months
30 30 to 31
September September December
2006 2005 2005
£m £m £m
New business sales 5 5 20
(a) Present Value of New Business Premiums (PVNBP) is a measure of insurance
sales calculated using the EEV methodology. It represents total single premiums
received during the period plus the discounted value of premiums expected to be
received over the term of new regular premiums contracts.
(b) Annual Premium Equivalent (APE) represents all new regular premiums and 10%
of single premiums.
(c) Spanish business is shown as discontinued operations as it was disposed of
in 2005.
(d) The Triple A fund within UK Investment sales is calculated using average net
client balances.
(e) Due to the nature of the Indian investment sales market, Indian new business
is shown as net of sales less redemptions.
Insurance Operations New Business - APE
3 month period ended 30 September 2006
Single Premiums New Regular Premiums Annual Premium Equivalents (APE)
Analysed by 3 3 % 3 3 % 3 3 % % Change
geographical months months Change months months Change months months Change in local
region to 30 to 30 to 30 to 30 to 30 to 30 currency
Sep Sep Sep Sep Sep Sep (a)
2006 2005 2006 2005 2006 2005
£m £m £m £m £m £m
UK
Individual 200 147 36% 12 11 9% 32 26 23% 23%
Pensions
SIPP & 664 266 150% 10 1 900% 76 27 181% 181%
Drawdown
Group 204 92 122% 89 72 24% 109 81 35% 35%
Pensions
Investments 464 322 44% 0 0 0% 46 32 44% 44%
(TIP and
PPIP)
Pensions 1,532 827 85% 111 84 32% 263 166 58% 58%
Investment 449 343 31% 0 0 0% 45 34 32% 32%
Bonds
Offshore 11 0 N/A 0 0 0% 1 0 N/A N/A
Bond
Other 0 0 0% 0 0 0% 0 0 0% 0%
Life 460 343 34% 0 0 0% 46 34 35% 35%
Annuities 152 70 117% 0 0 0% 16 7 129% 129%
Protection 0 0 0% 2 2 0% 2 2 0% 0%
UK Life and 2,144 1,240 73% 113 86 31% 327 209 56% 56%
Pensions
Europe
Republic of 50 33 52% 4 2 100% 9 6 50% 58%
Ireland
Germany 9 8 13% 10 9 11% 11 9 22% 13%
European 59 41 44% 14 11 27% 20 15 33% 33%
Insurance
Canada
Group 76 104 (27%) 4 3 33% 11 14 (21%) (15%)
savings and
retirement
Individual 78 100 (22%) 1 7 (86%) 9 16 (44%) (47%)
insurance,
savings and
retirement
Group 0 3 N/A 2 5 (60%) 2 6 (67%) (47%)
insurance
Canadian 154 207 (26%) 7 15 (53%) 22 36 (39%) (35%)
Insurance
Asia
India (c) 2 2 (11%) (b) 5 6 26% (b) 5 6 25% (b) 39%
China (c) 4 2 100% 0 0 0% 1 0 N/A N/A
Asia 6 4 50% 5 6 (17%) 6 6 0% (2%)
Insurance
Discontinued 0 0 0% 0 0 0% 0 0 0% 0%
operations
(d)
Total 2,363 1,492 58% 139 118 18% 375 266 41% 42%
Worldwide
Insurance
a) The percentage change in local currency is calculated using constant rates
of exchange.
b) The percentage change figures for India are computed based on the
percentage movement in the new business of HDFC Standard Life Limited to
avoid distortion due to changes in the Group's shareholding in the joint
venture during 2005 and 2006.
c) Amounts shown reflect Standard Life's share of the Joint Venture Company's
New Business.
d) Spanish business is shown as discontinued operations as it was disposed of
in 2005.
Investment Operations
3 month period ended 30 September 2006
Opening Gross Redemptions Net Market & Net Closing
FUM Sales £m Inflows other movement FUM
01/07/2006 £m £m movements in FUM 30/09/2006
£m £m £m £m
UK Mutual 3,534 328 (a) (92) 236 234 470 4,004
Funds
Private 1,775 1 (7) (6) (16) (22) 1,753
Equity
Segregated 7,087 84 (b) (83) 1 432 433 7,520
Funds
Pooled Property Funds 522 27 (b) 0 27 (12) 15 537
Triple A 4,792 (208) (c) 0 (208) 469 261 5,053
Total UK 17,710 232 (182) 50 1,107 1,157 18,867
Canada Mutual 1,095 52 (d) (35) 17 77 94 1,189
Funds
Separate Mandates (e) 1,037 8 (43) (35) 70 35 1,072
Total Canada 2,132 60 (78) (18) 147 129 2,261
International Europe 25 0 (2) (2) 2 0 25
Hong Kong 1 26 2 28 (1) 27 28
India 1,429 (57) (f) 0 (57) 115 58 1,487
Total International 1,455 (31) 0 (31) 116 85 1,540
Total Worldwide Investment Products 21,297 261 (260) 1 1,370 1,371 22,668
Total third party funds 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 funds under management is shown below.
Standard Life Investments
Opening Gross Redemptions Net Market & Net Closing
FUM inflows £m Inflows other movement FUM
01/07/2006 £m £m movements in FUM 30/09/2006
£m £m £m £m
Investment products 21,297 261 (260) 1 1,370 1,371 22,668
Third party insurance contracts 10,170 719 (372) 347 1,550 1,897 12,067
(new business classified as
insurance products) (g)
Third party funds under 31,467 980 (632) 348 2,920 3,268 34,735
management
Standard Life Investments - 123,419 129,717
total funds under management
(a) UK Mutual Fund gross sales were £143m and net inflows were £70m in the 3
months to 30 September 2005.
(b) Institutional sales comprise Segregated and Pooled Property Fund sales.
(c) Due to the nature of the Triple A fund the inflows shown 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 FUM.
(d) Canadian Mutual Funds gross sales were £81m and net inflows were £62m in
the 3 months to 30 September 2005.
(e) 'Separate Mandates' (previously called Investment Counselling) refers to
investment funds products sold in Canada exclusively to institutional
customers. These products contain no insurance risk and consist primarily
of defined benefit pension plan assets for which SLI exclusively provides
portfolio advisory services.
(f) As a result of the sales market volatility in India, Investment sales are
shown as net of sales less redemptions.
(g) During the third quarter 2006 SLI reclassified £1.0bn of investments from
Insurance funds under management to Third Party funds under management.
These investments represent individual segregated funds which are similar
to mutual funds but backed by a 75% capital guarantee and are now included
within Third party Insurance contracts. This reclassification has been
reflected in the Market & other movements column (see notes to editor, note
2, for further details)
Insurance Operations New Business - PVNBP
9 month period ended 30 September 2006
PVNBP
Analysed by 3 months ended 3 months ended 3 months ended 9 months ended 12 months ended
geographical region 30 September 30 June 31 March 30 September 31 December
2006 2006 2006 2006 2005
£m £m £m £m £m
UK
Pensions 1,972 1,796 1,453 5,221 4,987
Life 459 451 438 1,348 1,131
Annuities 152 115 53 320 295
Protection 10 13 11 34 42
UK Life and Pensions 2,593 2,375 1,955 6,923 6,455
Europe
Republic of Ireland 65 64 67 196 243
Germany 116 109 100 325 677
European Insurance 181 173 167 521 920
Canada
Group savings and 127 420 273 820 1,033
retirement
Individual insurance, 84 108 156 348 565
savings and retirement
Group insurance 17 18 50 85 284
Canadian Insurance 228 546 479 1,253 1,882
Asia
India (a) 67 23 34 124 94
China (a) 4 8 3 15 7
Asia Insurance 71 31 37 139 101
Discontinued operations 0 0 0 0 9
(b)
Total Worldwide 3,073 3,125 2,638 8,836 9,367
Insurance
(a) Amounts shown reflect Standard Life's share of the Joint Venture Company's
New Business.
(b) Spanish business is shown as discontinued operations as it was disposed of
in 2005.
This information is provided by RNS
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