8th Nov 2006 07:01
Standard Life plc08 November 2006 Standard Life plc New business results - nine months to 30 September 20068 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 otherwisestated3. 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 shownaccelerated growth in the first three quarters of 2006. "UK Life and Pensions sales in the first 9 months of 2006 exceeded the 2005calendar 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 confidentwe will continue to be one of the net winners with our SIPP product, whichenjoyed its strongest ever month for sales in September. Our performance hasbeen built on our first class service, strong suite of products and deeprelationships with intermediaries. "Continued excellent investment performance by Standard Life Investments hashelped us to grow our third party funds under management by 19%2 since the endof 2005. "Our progress since listing as a public company reaffirms our confidence in ourfuture 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 wasassisted by a 56% increase in third quarter sales to £327m (2005: £209m). Saleson a PVNBP4 basis were £6,923m for the first nine months of 2006 which alsoexceeded the 2005 calendar year total of £6,455m. PVNBP sales for the thirdquarter were £2,593m. Consistent with our focus on profitable areas of the market, sales growthcontinues 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 productline in the UK Life and Pensions suite has seen an increase in sales. Our UKbusiness continues to benefit from our market leadership in SIPP and theheightened 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) asour early mover advantage allowed us to capitalise on a growing SIPP market.SIPP experienced its strongest ever month for new business in September 2006with 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 at31 December 2005. The average SIPP case size was £163,000 at 30 September 2006with 85% of single premium sales into SIPP in the third quarter representing newinflows to the company. We expect SIPP to be the vehicle of choice for consolidation in the UK pensionsmarket. Our experience and reputation for service mean we are confident we willcontinue to be a major beneficiary of the growth in this market. In October2006 we were pleased to announce we have been added to a select list of SIPPproviders for the administration of Life and Pensions business written by UBS. Net pensions' inflows8 continued to be positive during the third quarteralthough there remains uncertainty around the long-term effects of the A-dayreforms on customer behaviour. In pensions, lapses continue above the long-termtrend, as reflected in the provisions made at the half year. We continue tomonitor carefully the current level of lapses. Group Pensions remains the largest single product by APE sales volume in our UKLife and Pensions business. Sales totalled £337m for the first nine months ofthe year (2005: £314m). The third quarter was particularly strong with salesincreasing 35% to £109m (2005: £81m). The year-to-date increase can beattributed to the introduction of Group SIPP where there have been total salesof £34m since launch in January 2006. Investment performance has been the key driver for higher sales of InvestmentBonds, TIP and PPIP. Investment Bonds increased 81% to £132m (2005: £73m) whileTIP and PPIP rose 58% to £123m (2005: £78m). As previously announced StandardLife will provide Citigroup with the investment platform for four definedcontribution pension schemes. We expect to include over £80m of APE for thismandate in our fourth quarter sales. Annuity sales increased 33% to £32m (2005: £24m) as business was received fromconsumers 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 customerswith 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 salesin the first quarter of 2005 caused by changes to domestic tax legislation. Thethird quarter 2006 German result shows an improving picture with salesincreasing 13% in local currency to £11m (2005: £9m). In October 2006 StandardLife 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 ofthe Synergy suite of products launched in 2005 and the introduction of newproducts 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 currencyto £121m (2005: £119m) following the management actions to reorientate towardsprofitable lines. We continue to target the Group Savings and Retirement market where we witnesseda 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 quoteactivity as the industry focuses on retention of the existing client base. Individual Insurance, Savings and Retirement sales were 33% lower in localcurrency at £38m (2005: £51m) following the repricing of our main universal lifeproduct in 2005. Group Insurance sales were 41% lower in local currency at £11m (2005: £18m) in amarket impacted by lower average case sizes and aggressive pricing. We expect sales will recover in the fourth quarter. In October we securedsignificant schemes in Group Savings and Retirement and Group Insurance. Asia In India, Standard Life has two joint venture partnerships with HDFC: a lifeinsurance 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 holds49.9%. Standard Life's holding in HDFC Standard Life Insurance Limited changedduring 2006 and the results for the period to 30 September 2006 are based on aweighted average holding of 17.7% (9 months to 30 September 2005: 26.0%). Salesfor 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 October2006 opened a new branch office in Jiangsu province; the largest insurancemarket in mainland China. Standard Life Investments (SLI) Continued investment outperformance, which has driven further mandate wins, andimproving equity markets have seen SLI's total funds under management increaseto £129.7bn at the end of the third quarter of 2006. Third party funds undermanagement have increased by an underlying 19%2 from £29.1bn2 at the end of 2005to £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 whichequates 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 waslaunched in 1998, with net inflows of £920m for the first nine months of theyear. Net inflows in the third quarter were £236m, building on the salesmomentum generated during the first half of the year. In October 2006, SLI announced that the Select Property Fund had grown to £780min the 12 months since its launch, making it one of the fastest growing retailfunds launched in the UK over that period. Standard Life Healthcare (SLH) SLH's continued focus on writing profitable SME10 business, and the competitivepressures in that market, resulted in sales of £15m for the first nine months of2006 comparable to the corresponding period in 2005. Third quarter sales of £5mwere also in line with last year. Standard Life Bank (SLB) The UK fixed rate mortgage market was highly competitive in the first half of2006 and this, coupled with a continued focus on profitability rather thanvolume, resulted in a fall in gross mortgage lending for the nine months to 30September 2006 of 8% to £2,111m (2005: £2,290m). However sales volumes improvedin 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 at31 December 2005. At the end of the third quarter 2006 arrears rates continueto 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 December2005: £82m). For further information please contact: Media: Scott White 0131 245 5422 / 07712 485 738Barry Cameron 0131 245 6165 / 07712 486 463Emma Wylie 0207 872 4154 / 07712 486 444Neil Bennett (Maitland) 0207 379 5151 / 07900 000 777 Equity Investors: Gordon Aitken 0131 245 6799Conor O'Neill 0131 245 6466Gillian Bailey 0131 245 1110 Debt Investors: John Cummins 0131 245 5195Georgina 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 2006Insurance 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 £mUKPensions 5,221 4,987 748 582 758Life 1,348 1,131 136 74 114Annuities 320 295 32 24 30Protection 34 42 5 4 6UK Life and Pensions 6,923 6,455 921 684 908 EuropeRepublic of Ireland 196 243 27 17 34Germany 325 677 31 51 66European Insurance 521 920 58 68 100 CanadaGroup savings and retirement 820 1,033 72 50 89Individual insurance, savings 348 565 38 51 71and retirementGroup insurance 85 284 11 18 24Canadian Insurance 1,253 1,882 121 119 184 Asia PacificIndia 124 94 17 17 23China 15 7 2 0 1Asia Pacific Insurance 139 101 19 17 24 Discontinued operations (c) 0 9 0 2 2 Total Worldwide 8,836 9,367 1,119 890 1,218Insurance 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 4,944Canada 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 4,868Investment 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 3,092Lending 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 - APE9 month period ended 30 September 2006 Single Premiums New Regular Premiums Annual Premium Equivalents (APE)Analysed by 9 9 % 9 9 % 9 9 % % Changegeographical months months Change months months Change months months Change in localregion 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 UKIndividual 616 547 13% 45 48 (6%) 106 103 3% 3%PensionsSIPP & 1,455 780 87% 36 10 260% 182 87 109% 109%DrawdownGroup 415 283 47% 296 286 3% 337 314 7% 7%PensionsInvestments 1,231 781 58% 0 0 0% 123 78 58% 58%(TIP andPPIP)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%BondsOffshore 26 0 N/A 0 0 0% 3 0 N/A N/ABondOther 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 EuropeRepublic of 153 91 68% 12 8 50% 27 17 59% 59%IrelandGermany 24 27 (11%) 28 48 (42%) 31 51 (39%) (39%)European 177 118 50% 40 56 (29%) 58 68 (15%) (15%)Insurance CanadaGroup 475 284 67% 25 22 14% 72 50 44% 32%savings andretirementIndividual 316 333 (5%) 6 18 (67%) 38 51 (25%) (33%)insurance,savings andretirementGroup 0 3 N/A 11 17 (35%) 11 18 (39%) (41%)insuranceCanadian 791 620 28% 42 57 (26%) 121 119 2% (7%)Insurance AsiaIndia (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/Aoperations(d) Total 6,369 4,119 55% 483 479 1% 1,119 890 26% 24%WorldwideInsurance 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 Operations9 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 5,053Total 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 1,487Total International 1,341 390 (190) 200 (1) 199 1,540 Total Worldwide 18,552 4,054 (933) 3,121 995 4,116 22,668Investment 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 22,668productsThird party insurance 9,577 1,739 (974) 765 1,725 2,490 12,067contracts (newbusiness classified asinsurance products)(g)Third party funds 28,129 5,793 (1,907) 3,886 2,720 6,606 34,735under managementStandard Life 118,842 129,717Investments - totalfunds undermanagement (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 Summary3 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 2005UK £m £m £m £m £mPensions 1,972 4,987 263 166 758Life 459 1,131 46 34 114Annuities 152 295 16 7 30Protection 10 42 2 2 6UK Life and Pensions 2,593 6,455 327 209 908 EuropeRepublic of Ireland 65 243 9 6 34Germany 116 677 11 9 66European Insurance 181 920 20 15 100 CanadaGroup savings and 127 1,033 11 14 89retirementIndividual insurance, savings and 84 565 9 16 71retirementsGroup insurance 17 284 2 6 24Canadian Insurance 228 1,882 22 36 184 AsiaIndia 67 94 5 6 23China 4 7 1 0 1Asia Insurance 71 101 6 6 24 Discontinued 0 9 0 0 2operations (c) Total Worldwide 3,073 9,367 375 266 1,218Insurance 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 £mUK (d) 232 875 5,551 50 782 4,944Canada 60 89 399 (18) 27 (41)International (e) (31) 69 (33) (31) 69 (35)Total Worldwide 261 1,033 5,917 1 878 4,868Investment 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 £mGross 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 £mNew business sales 5 5 20 (a) Present Value of New Business Premiums (PVNBP) is a measure of insurancesales calculated using the EEV methodology. It represents total single premiumsreceived during the period plus the discounted value of premiums expected to bereceived 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 ofin 2005. (d) The Triple A fund within UK Investment sales is calculated using average netclient balances. (e) Due to the nature of the Indian investment sales market, Indian new businessis shown as net of sales less redemptions. Insurance Operations New Business - APE3 month period ended 30 September 2006 Single Premiums New Regular Premiums Annual Premium Equivalents (APE)Analysed by 3 3 % 3 3 % 3 3 % % Changegeographical months months Change months months Change months months Change in localregion 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 £mUKIndividual 200 147 36% 12 11 9% 32 26 23% 23%PensionsSIPP & 664 266 150% 10 1 900% 76 27 181% 181%DrawdownGroup 204 92 122% 89 72 24% 109 81 35% 35%PensionsInvestments 464 322 44% 0 0 0% 46 32 44% 44%(TIP andPPIP)Pensions 1,532 827 85% 111 84 32% 263 166 58% 58%Investment 449 343 31% 0 0 0% 45 34 32% 32%BondsOffshore 11 0 N/A 0 0 0% 1 0 N/A N/ABondOther 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 EuropeRepublic of 50 33 52% 4 2 100% 9 6 50% 58%IrelandGermany 9 8 13% 10 9 11% 11 9 22% 13%European 59 41 44% 14 11 27% 20 15 33% 33%Insurance CanadaGroup 76 104 (27%) 4 3 33% 11 14 (21%) (15%)savings andretirementIndividual 78 100 (22%) 1 7 (86%) 9 16 (44%) (47%)insurance,savings andretirementGroup 0 3 N/A 2 5 (60%) 2 6 (67%) (47%)insuranceCanadian 154 207 (26%) 7 15 (53%) 22 36 (39%) (35%)Insurance AsiaIndia (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/AAsia 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%WorldwideInsurance 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 Operations3 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 5,053Total 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 1,072Total 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 1,487Total 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 22,668Third party insurance contracts 10,170 719 (372) 347 1,550 1,897 12,067(new business classified asinsurance products) (g)Third party funds under 31,467 980 (632) 348 2,920 3,268 34,735managementStandard Life Investments - 123,419 129,717total 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 - PVNBP9 month period ended 30 September 2006 PVNBP Analysed by 3 months ended 3 months ended 3 months ended 9 months ended 12 months endedgeographical region 30 September 30 June 31 March 30 September 31 December 2006 2006 2006 2006 2005 £m £m £m £m £mUKPensions 1,972 1,796 1,453 5,221 4,987Life 459 451 438 1,348 1,131Annuities 152 115 53 320 295Protection 10 13 11 34 42UK Life and Pensions 2,593 2,375 1,955 6,923 6,455 EuropeRepublic of Ireland 65 64 67 196 243Germany 116 109 100 325 677European Insurance 181 173 167 521 920 CanadaGroup savings and 127 420 273 820 1,033retirementIndividual insurance, 84 108 156 348 565savings and retirementGroup insurance 17 18 50 85 284Canadian Insurance 228 546 479 1,253 1,882 AsiaIndia (a) 67 23 34 124 94China (a) 4 8 3 15 7Asia Insurance 71 31 37 139 101 Discontinued operations 0 0 0 0 9(b) Total Worldwide 3,073 3,125 2,638 8,836 9,367Insurance (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 The company news service from the London Stock ExchangeRelated Shares:
SLA.L