Q4 New Business

RNS Number : 7530Z

St. James's Place PLC

20 January 2011

 



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ST. JAMES'S PLACE plc

27 St. James's Place, London SW1A 1NR

Telephone [phone]    Facsimile 020 7493 2382

PRESS RELEASE

20 January 2011

ST. JAMES'S PLACE WEALTH MANAGEMENT

2010 NEW BUSINESS

37% GROWTH IN NEW SINGLE INVESTMENTS DRIVES FUNDS

UNDER MANAGEMENT TO £27 BILLION

St. James's Place plc ("SJP"), the wealth management group, today issues its new business update for the twelve months ended 31 December 2010.

Highlights for the twelve months are:

New Business

·     Total single investments of £4.75 billion (2009: £3.46 billion), up 37%

·     Total new business on an APE basis of £581.8 million (2009: £440.8 million), up 32%

·     Manufactured business represents 91% of new business (2009: 91%)

Funds Under Management

·     Net inflow of funds under management of £3.0 billion (2009: £2.3 billion), up 30%

·     Continue to retain 95% of existing clients' funds

·     Funds under management of £27.0 billion, up £5.6 billion over the year

Partnership

·     Partnership numbers up 6% for the year to 1,552

David Bellamy, Chief Executive, commented:

"I am extremely pleased to report another year of record new business for St. James's Place, including a strong final quarter. New investments of £4.75 billion coupled with the excellent retention of existing client funds and further growth in stock markets, have resulted in funds under management reaching an all time high of £27 billion.

We remain committed to recruiting only the highest quality advisers into the Partnership, while ensuring that we are able to offer a best in class investment proposition for clients. We believe this focused approach will enable us to maintain momentum in our business and provide a good platform to deliver 15-20% per annum new business growth over the medium term"

The details of the announcement are attached.

Enquiries:

David Bellamy,  Chief Executive	Tel:	020 7514 1963
Andrew Croft,  Group Finance Director	Tel:	020 7514 1963
Tulchan Communications Group Ltd John Sunnucks/Mal Patel	Tel:	020 7353 4200

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ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES TO 31 DECEMBER 2010

TOTAL LONG TERM SAVINGS

	Unaudited 3 Months to 31 December 2010								Unaudited 12 Months to 31 December 2010
New PREMIUMS		2010 £'m		2009 £'m		Change %				2010 £'m		2009 £'m		Change %
New Regular Premiums
- Pensions		22.1		19.4		14%				86.9		75.4		15%
- Protection		5.3		5.4		(2%)				20.0		19.6		2%
		27.4		24.8		10%				106.9		95.0		13%
New Single Premiums
- Investment		542.0		455.3		19%				1,965.4		1,389.4		41%
- Pensions		417.2		346.7		20%				1,537.2		1,176.6		31%
		959.2		802.0		20%				3,502.6		2,566.0		37%
Unit Trust Sales (including PEPs and ISAs)		293.9		282.7		4%				1,246.2		892.2		40%
	Unaudited 3 Months to 31 December 2010								Unaudited 12 Months to 31 December 2010
		2010 £'m		2009 £'m		Change %				2010 £'m		2009 £'m		Change %
NEW BUSINESS (RP + 1/10TH SP)
Investment		83.6		73.7		13%				321.2		228.1		41%
Pensions		63.8		54.1		18%				240.6		193.1		25%
Protection		5.3		5.4		(2%)				20.0		19.6		2%
Total		152.7		133.2		15%				581.8		440.8		32%

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ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES TO 31 DECEMBER 2010

MANUFACTURED LONG TERM SAVINGS

	Unaudited 3 Months to 31 December 2010								Unaudited 12 Months to 31 December 2010
New PREMIUMS		2010 £'m		2009 £'m		Change %				2010 £'m		2009 £'m		Change %
New Regular Premiums
- Pensions		18.0		16.5		9%				68.3		63.2		8%
- Protection		1.5		1.2		25%				5.2		4.7		11%
		19.5		17.7		10%				73.5		67.9		8%
New Single Premiums
- Investment		537.1		452.0		19%				1,924.6		1,372.2		40%
- Pensions		387.5		315.4		23%				1,399.5		1,057.2		32%
		924.6		767.4		20%				3,324.1		2,429.4		37%
Unit Trust Sales (including PEPs and ISAs)		293.9		282.7		4%				1,246.2		892.2		40%
	Unaudited 3 Months to 31 December 2010								Unaudited 12 Months to 31 December 2010
		2010 £'m		2009 £'m		Change %				2010 £'m		2009 £'m		Change %
NEW BUSINESS (RP + 1/10TH SP)
Investment		83.1		73.4		13%				317.1		226.4		40%
Pensions		56.7		48.1		18%				208.2		169.0		23%
Protection		1.5		1.2		25%				5.2		4.7		11%
Total		141.3		122.7		15%				530.5		400.1		33%

% of total new business

93%

92%

91%

91%

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ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES TO 31 DECEMBER 2010

Non Manufactured Long Term Savings

For the three months:

·        Investment premiums of £4.9 million (2009: £3.3 million), amounting to £0.5 million (2009: £0.3 million) on an APE basis.

·        Pension single premiums of £29.7 million (2009: £31.3 million) and regular premiums of £4.1 million (2009: £2.9 million), amounting to £7.1 million (2009: £6.0 million) on an APE basis.

·        Protection business of £3.8 million regular premiums (2009: £4.2 million).

·        Total new business, on an APE basis, of £11.4 million (2009: £10.5 million).

For the twelve months:

·        Investment premiums of £40.8 million (2009: £17.2 million), amounting to £4.1 million (2009: £1.7 million) on an APE basis.

·        Pension single premiums of £137.7 million (2009: £119.4 million) and regular premiums of £18.6 million (2009: £12.2 million), amounting to £32.4 million (2009: £24.1 million) on an APE basis.

·        Protection business of £14.8 million regular premiums (2009: £14.9 million).

·        Total new business, on an APE basis, of £51.3 million (2009: £40.7 million).

Funds Under Management

The table below provides an analysis of the movement in funds under management:

	Unaudited Year Ended 31 December 2010		Unaudited Year Ended 31 December 2009
		£'bn		£'bn
Opening funds under management		21.4		16.3
New money invested		4.7		3.5
Net investment return		2.6		2.8
		28.7		22.6
Regular income withdrawals & maturities		(0.5)		(0.4)
Surrenders & part surrenders		(1.2)		(0.8)
Closing funds under management		27.0		21.4
Annualised surrender rate as a % of average funds under management		5.0%		4.0%

Capital

There have been no material changes to solvency capital during the final quarter.  The investment policy for non-linked assets remains on a prudent basis, with no exposure to equity investments: non-linked liabilities are matched by government backed gilts and bonds, and surplus assets are invested in AAA rated money market funds.  This policy continues to immunise the capital base from stock market falls and both widening spreads and credit defaults on corporate bonds.

 

END

 

 

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