Final Results - Part 5 of 5

RNS Number : 4305Z
Standard Life plc
07 March 2013
 



Standard Life plc

Preliminary Results 2012

Part 5 of 5

 

Section 4 - Supplementary information

4.1 EEV and EEV operating profit

Covered






UK and Europe

Canada

Asia and Emerging Markets

Total non-covered

Group elimination

Total

Pence per share1

 

2012

£m

£m

£m

£m

£m

£m

p

 

Opening EEV

3,733

1,712

342

1,552

89

7,428

316

 

New business contribution

261

45

33

-

-

339


 

Contribution from in-force business

538

272

(19)

-

-

791


 

Non-covered business

-

-

-

61

(75)

(14)


 

EEV operating profit/(loss) before tax

799

317

14

61

(75)

1,116


 









 

Tax on EEV operating profit

(187)

(76)

(1)

6

18

(240)


 

EEV operating profit/(loss) after tax

612

241

13

67

(57)

876

37

 









 

EEV non-operating profit/(loss) after tax

19

185

21

(17)

(32)

176

7

 

EEV profit/(loss) after tax

631

426

34

50

(89)

1,052


 









 

Non-trading adjustments

(355)

175

15

(177)

-

(342)


 

Closing EEV

4,009

2,313

391

1,425

-

8,138

343

 

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

Covered






UK and Europe

Canada

Asia and Emerging Markets

Total non-covered

Group elimination

Total

Pence per share1

2011

£m

£m

£m

£m

£m

£m

p

Opening EEV

3,995

1,758

318

1,205

45

7,321

322

New business contribution

225

73

37

-

-

335


Contribution from in-force business

325

251

(22)

-

-

554


Non-covered business

-

-

-

100

-

100


EEV operating profit before tax

550

324

15

100

-

989










Tax on EEV operating profit

(139)

(80)

(2)

(44)

-

(265)


EEV operating profit after tax

411

244

13

56

-

724

31









EEV non-operating (loss)/profit after tax

(257)

(108)

(12)

(22)

44

(355)

(15)

EEV profit after tax

154

136

1

34

44

369










Non-trading adjustments

(416)

(182)

23

313

-

(262)


Closing EEV

3,733

1,712

342

1,552

89

7,428

316

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


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

UK and Europe

Standard Life Investments

Canada

Asia and Emerging Markets

Other

Total

2012

£m

£m

£m

£m

£m

£m

Operating profit/(loss) before tax

419

145

355

5

(24)

900

Tax on operating profit

(17)

(38)

(79)

3

(2)

(133)

Operating profit/(loss) after tax1

402

107

276

8

(26)

767








Impact of different treatment of assets and actuarial reserves

(17)

-

-

(2)

-

(19)

DAC and DIR2, intangibles, tax and other3

11

-

59

(27)

(57)

(14)

Look through to investment management

60

(62)

2

-

-

-

EEV operating capital and cash generation

456

45

337

(21)

(83)

734








EEV operating profit after tax - PVIF

218

-

(100)

24

-

142

EEV operating profit/(loss) after tax

674

45

237

3

(83)

876

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

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

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

 

UK and Europe

Standard Life Investments

Canada

Asia and Emerging Markets

Other

Total

2011

£m

£m

£m

£m

£m

£m

Operating profit/(loss) before tax

266

125

187

(6)

(28)

544

Tax on operating profit

(26)

(30)

(31)

2

(2)

(87)

Operating profit/(loss) after tax

240

95

156

(4)

(30)

457








Impact of different treatment of assets and actuarial reserves

2

-

(11)

2

-

(7)

DAC and DIR1, intangibles, tax and other

(2)

-

11

(21)

-

(12)

Look through to investment management

39

(41)

2

-

-

-

EEV operating capital and cash generation

279

54

158

(23)

(30)

438








EEV operating profit after tax - PVIF

174

-

82

30

-

286

EEV operating profit/(loss) after tax

453

54

240

7

(30)

724

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


4.3 Group EEV capital and cash generation

Free surplus movement

Required capital movement

EEV net worth

movement

2012

£m

£m

£m

Capital and cash generation from existing business

636

(23)

613

New business strain

(325)

109

(216)

Covered business capital and cash generation from new business and expected return

311

86

397

Covered business development expenses

(49)

-

(49)

Core

262

86

348

Efficiency

(2)

(1)

(3)

Back book management

452

(63)

389

EEV operating capital and cash generation

712

22

734

Capital and cash generation from non-operating items

(369)

57

(312)

Total EEV capital and cash generation

343

79

422

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

 

Free surplus movement

Required capital movement

EEV net worth

movement

2011

£m

£m

£m

Capital and cash generation from existing business

688

(45)

643

New business strain

(290)

64

(226)

Covered business capital and cash generation from new business and expected return

398

19

417

Covered business development expenses

(50)

-

(50)

Non-covered business core capital and cash generation

(5)

-

(5)

Core

343

19

362

Efficiency

(6)

-

(6)

Back book management

78

4

82

EEV operating capital and cash generation

415

23

438

Capital and cash generation from non-operating items

(372)

258

(114)

Total EEV capital and cash generation

43

281

324

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

4.4 Reconciliation of key capital measures


2012

2011

2010


£bn

£bn

£bn

IGD regulatory capital resources

8.0

7.3

7.4

Capital in long-term business funds

(2.8)

(3.1)

(2.6)

External subordinated liabilities

(1.9)

(1.1)

(1.8)

Valuation adjustments for IFRS

1.1

0.9

0.9

IFRS equity attributable to ordinary equity holders of Standard Life plc

4.4

4.0

3.9

Valuation adjustments for EEV

(0.7)

(0.4)

(0.4)

EEV net worth

3.7

3.6

3.5

Cost of required capital

(0.7)

(0.6)

(0.4)

PVIF and TVOG

5.1

4.4

4.2

Closing EEV

8.1

7.4

7.3


4.5 Group assets under administration and net flows

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

Group assets under administration (summary)

12 months ended 31 December 2012

Opening AUA at

1 Jan 2012

Gross

flows

Redemptions

Net

flows

Market

and other

movements

Closing

AUA at

31 Dec 2012


£bn

£bn

£bn

£bn

£bn

£bn

Fee business







UK retail new

23.7

5.2

(2.4)

2.8

2.2

28.7

UK retail old

32.1

0.8

(3.9)

(3.1)

2.7

31.7

UK retail

55.8

6.0

(6.3)

(0.3)

4.9

60.4

Corporate

22.0

3.0

(1.8)

1.2

1.3

24.5

UK retail and corporate

77.8

9.0

(8.1)

0.9

6.2

84.9

Institutional pensions

17.5

4.2

(2.4)

1.8

2.0

21.3

Conventional with profits

5.3

0.1

(1.5)

(1.4)

0.2

4.1

UK total

100.6

13.3

(12.0)

1.3

8.4

110.3

Europe

9.3

1.5

(0.8)

0.7

0.8

10.8

Standard Life Investments third party

71.8

17.6

(11.5)

6.1

5.1

83.0

Canada

14.3

2.8

(2.0)

0.8

0.8

15.9

Asia and Emerging Markets (wholly owned)

2.5

0.8

(0.2)

0.6

0.2

3.3

Consolidation/eliminations1

(35.7)

(8.4)

4.6

(3.8)

(3.1)

(42.6)

Total fee business

162.8

27.6

(21.9)

5.7

12.2

180.7

Spread/risk







UK

14.4

0.7

(1.2)

(0.5)

1.4

15.3

Europe

0.5

-

-

-

-

0.5

Canada

10.3

0.9

(1.3)

(0.4)

-

9.9

Total spread/risk business

25.2

1.6

(2.5)

(0.9)

1.4

25.7

Assets not backing products in long-term savings business

8.5

-

-

-

-

8.5

Joint ventures

1.2

0.4

(0.2)

0.2

0.1

1.5

Other corporate assets

1.6

-

-

-

0.4

2.0

Other consolidation/eliminations1

(0.9)

-

-

-

0.6

(0.3)

Group assets under administration

198.4

29.6

(24.6)

5.0

14.7

218.1

Group assets under administration managed by:







Standard Life Group entities

163.3





176.0

Other third party managers

35.1





42.1

Total

198.4





218.1

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

 


Group assets under administration (summary)

12 months ended 31 December 2011

Opening AUA at

1 Jan 2011

Gross

flows

Redemptions

Net

flows

Market

and other

movements

Closing

AUA at

31 Dec 2011


£bn

£bn

£bn

£bn

£bn

£bn

Fee business







UK retail new

21.0

5.7

(2.0)

3.7

(1.0)

23.7

UK retail old

34.5

0.9

(3.7)

(2.8)

0.4

32.1

UK retail

55.5

6.6

(5.7)

0.9

(0.6)

55.8

Corporate

21.0

3.9

(1.9)

2.0

(1.0)

22.0

UK retail and corporate

76.5

10.5

(7.6)

2.9

(1.6)

77.8

Institutional pensions

15.8

3.2

(1.8)

1.4

0.3

17.5

Conventional with profits

6.6

0.2

(1.7)

(1.5)

0.2

5.3

UK total

98.9

13.9

(11.1)

2.8

(1.1)

100.6

Europe

8.7

1.5

(0.8)

0.7

(0.1)

9.3

Standard Life Investments third party

71.6

12.9

(8.6)

4.3

(4.1)

71.8

Canada

14.0

2.3

(1.7)

0.6

(0.3)

14.3

Asia and Emerging Markets (wholly owned)

1.9

1.0

(0.3)

0.7

(0.1)

2.5

Consolidation/eliminations1

(32.2)

(7.7)

4.7

(3.0)

(0.5)

(35.7)

Total fee business

162.9

23.9

(17.8)

6.1

(6.2)

162.8

Spread/risk







UK

13.4

0.5

(1.2)

(0.7)

1.7

14.4

Europe

0.5

-

-

-

-

0.5

Canada

10.1

1.1

(1.4)

(0.3)

0.5

10.3

Total spread/risk business

24.0

1.6

(2.6)

(1.0)

2.2

25.2

Assets not backing products in long-term savings business

8.1

-

-

-

0.4

8.5

Joint ventures

1.2

0.4

(0.1)

0.3

(0.3)

1.2

Other corporate assets

1.4

-

-

-

0.2

1.6

Other consolidation/eliminations1

(0.8)

-

-

-

(0.1)

(0.9)

Group assets under administration

196.8

25.9

(20.5)

5.4

(3.8)

198.4

Group assets under administration managed by:







Standard Life Group entities

164.0





163.3

Other third party managers

32.8





35.1

Total

196.8





198.4

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

 


4.5 Group assets under administration and net flows continued

Group assets under administration

12 months ended 31 December 2012

Fee (F) - Spread/risk (S/R)

Opening AUA at

1 Jan 2012

Gross

flows

Redemptions

Net

flows

Market

and other

movements

Closing

AUA at

31 Dec 2012


£bn

£bn

£bn

£bn

£bn

£bn

UK








Individual SIPP

F

 16.4

 2.7

(1.9)

 0.8

 1.6

 18.8

Other individual pensions

F

 22.6

 0.7

(2.5)

(1.8)

 2.1

 22.9

Investment bonds

F

 7.6

 0.2

(1.1)

(0.9)

 0.5

 7.2

Mutual funds

F

 6.1

 1.5

(0.4)

 1.1

 0.4

 7.6

Legacy life (excluding conventional with profits)

F

 2.2

 0.1

(0.3)

(0.2)

 0.1

 2.1

Wealth

F

 0.9

 0.8

(0.1)

 0.7

 0.2

 1.8

UK retail fee business


 55.8

 6.0

(6.3)

(0.3)

 4.9

 60.4

Corporate pensions

F

 22.0

 3.0

(1.8)

 1.2

 1.3

 24.5

UK retail and corporate fee business


 77.8

 9.0

(8.1)

 0.9

 6.2

 84.9

Institutional pensions

F

 17.5

 4.2

(2.4)

 1.8

 2.0

 21.3

Conventional with profits

F

 5.3

 0.1

(1.5)

(1.4)

 0.2

 4.1

UK total fee business


 100.6

 13.3

(12.0)

 1.3

 8.4

 110.3

Annuities

S/R

 14.4

 0.7

(1.2)

(0.5)

 1.4

 15.3

Assets not backing products


7.0

-

-

-

(0.5)

6.5

UK long-term savings


 122.0

 14.0

(13.2)

 0.8

 9.3

 132.1

Europe








Fee

F

 9.3

 1.5

(0.8)

 0.7

 0.8

 10.8

Spread/risk

S/R

 0.5

-

-

-

-

 0.5

Europe long-term savings


 9.8

 1.5

(0.8)

 0.7

 0.8

 11.3

UK and Europe long-term savings


 131.8

 15.5

(14.0)

 1.5

 10.1

 143.4

Canada








Fee

F

 10.9

 1.9

(1.4)

 0.5

 0.6

 12.0

Spread/risk

S/R

 3.8

 0.2

(0.4)

(0.2)

-                      

 3.6

Group savings and retirement


 14.7

 2.1

(1.8)

 0.3

 0.6

 15.6

Fee

F

 1.9

 0.6

(0.3)

 0.3

 0.1

 2.3

Spread/risk

S/R

 5.9

 0.2

(0.5)

(0.3)

 0.1

 5.7

Individual insurance, savings and retirement


 7.8

 0.8

(0.8)

-

 0.2

 8.0

Group insurance

S/R

 0.6

 0.5

(0.4)

 0.1

(0.1)

 0.6

Mutual funds

F

 1.5

 0.3

(0.3)

-

 0.1

 1.6

Assets not backing products


 1.5

-

-

-

 0.5

 2.0

Canada long-term savings


 26.1

 3.7

(3.3)

 0.4

 1.3

 27.8

Asia and Emerging Markets








Wholly owned long-term savings

F

 2.5

 0.8

(0.2)

 0.6

 0.2

 3.3

Joint ventures long-term savings


 1.2

 0.4

(0.2)

 0.2

 0.1

 1.5

Asia and Emerging Markets long-term savings


 3.7

 1.2

(0.4)

 0.8

 0.3

 4.8

Consolidation and elimination adjustments1


(0.2)

(0.1)

-

(0.1)

-

(0.3)

Total worldwide long-term savings


 161.4

 20.3

(17.7)

 2.6

 11.7

 175.7

Other corporate assets


 1.6

-

-

-

 0.4

 2.0

Standard Life Investments third party assets under management


 71.8

 17.6

(11.5)

 6.1

 5.1

 83.0

Consolidation and elimination adjustments2,3


(36.4)

(8.3)

 4.6

(3.7)

(2.5)

(42.6)

Group assets under administration


 198.4

 29.6

(24.6)

 5.0

 14.7

 218.1

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

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

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


Long-term savings operations net flows

12 months ended 31 December 2012


Gross flows

Redemptions

Net flows

Gross flows

Redemptions

Net flows


Fee (F) - Spread/risk (S/R)

12 months to

31 Dec 2012

12 months to

31 Dec 2012

12 months to

31 Dec 2012

12 months to

31 Dec 2011

12 months to

31 Dec 2011

12 months to

31 Dec 2011


£m

£m

£m

£m

£m

£m

UK








Individual SIPP1

F

2,723

(1,872)

851

3,329

(1,596)

1,733

Other individual pensions

F

699

(2,464)

(1,765)

748

(2,371)

(1,623)

Investment bonds

F

158

(1,154)

(996)

203

(1,183)

(980)

Mutual funds1

F

1,552

(456)

1,096

1,790

(406)

1,384

Legacy life (excluding conventional with profits)

F

108

(337)

(229)

121

(255)

(134)

Wealth

F

801

(62)

739

453

(47)

406

UK retail fee business


6,041

(6,345)

(304)

6,644

(5,858)

786

Corporate pensions1

F

2,971

(1,747)

1,224

3,904

(1,880)

2,024

UK retail and corporate fee business


9,012

(8,092)

920

10,548

(7,738)

2,810

Institutional pensions

F

4,199

(2,367)

1,832

3,209

(1,795)

1,414

Conventional with profits

F

129

(1,576)

(1,447)

173

(1,621)

(1,448)

UK total fee business


13,340

(12,035)

1,305

13,930

(11,154)

2,776

Annuities

S/R

632

(1,179)

(547)

459

(1,134)

(675)

Protection

S/R

67

(50)

17

76

(52)

24

UK long-term savings


14,039

(13,264)

775

14,465

(12,340)

2,125

Europe








Fee

F

1,428

(727)

701

1,496

(728)

768

Spread/risk

S/R

41

(32)

9

20

(30)

(10)

Europe long-term savings


1,469

(759)

710

1,516

(758)

758

UK and Europe long-term savings


15,508

(14,023)

1,485

15,981

(13,098)

2,883

Canada








Fee

F

1,852

(1,352)

500

1,626

(1,096)

530

Spread/risk

S/R

197

(421)

(224)

229

(435)

(206)

Group savings and retirement


2,049

(1,773)

276

1,855

(1,531)

324

Fee

F

668

(337)

331

540

(341)

199

Spread/risk

S/R

240

(516)

(276)

312

(557)

(245)

Individual insurance, savings and retirement


908

(853)

55

852

(898)

(46)

Group insurance

S/R

452

(360)

92

442

(356)

86

Mutual funds1

F

275

(291)

(16)

218

(329)

(111)

Canada long-term savings


3,684

(3,277)

407

3,367

(3,114)

253

Asia and Emerging Markets








Wholly owned long-term savings

F

844

(239)

605

970

(280)

690

Joint ventures long-term savings2


410

(161)

249

415

(140)

275

Asia and Emerging Markets

long-term savings


1,254

(400)

854

1,385

(420)

965

Other consolidation/eliminations3

(122)

9

(113)

(85)

8

(77)

Total worldwide long-term savings

20,324

(17,691)

2,633

20,648

(16,624)

4,024

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

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

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


4.5 Group assets under administration and net flows continued 

Long-term savings operations net flows

Three months ended 31 December 2012


Gross flows

Redemptions

Net flows

Gross flows

Redemptions

Net flows


Fee (F) - Spread/risk (S/R)

3 months to

31 Dec 2012

3 months to

31 Dec 2012

3 months to

31 Dec 2012

3 months to

31 Dec 2011

3 months to

31 Dec 2011

3 months to

31 Dec 2011


£m

£m

£m

£m

£m

£m

UK








Individual SIPP1

F

622

(507)

115

687

(375)

312

Other individual pensions

F

133

(706)

(573)

140

(525)

(385)

Investment bonds

F

43

(267)

(224)

36

(291)

(255)

Mutual funds1

F

398

(120)

278

316

(101)

215

Legacy life (excluding conventional

with profits)

F

25

(81)

(56)

29

(62)

(33)

Wealth

F

190

(23)

167

126

(14)

112

UK retail fee business


1,411

(1,704)

(293)

1,334

(1,368)

(34)

Corporate pensions1

F

708

(512)

196

771

(368)

403

UK retail and corporate fee business


2,119

(2,216)

(97)

2,105

(1,736)

369

Institutional pensions

F

1,067

(855)

212

746

(439)

307

Conventional with profits

F

28

(436)

(408)

39

(440)

(401)

UK total fee business


3,214

(3,507)

(293)

2,890

(2,615)

275

Annuities

S/R

199

(295)

(96)

119

(283)

(164)

Protection

S/R

16

(11)

5

19

(14)

5

UK long-term savings


3,429

(3,813)

(384)

3,028

(2,912)

116

Europe








Fee

F

443

(229)

214

422

(258)

164

Spread/risk

S/R

11

(8)

3

7

(5)

2

Europe long-term savings


454

(237)

217

429

(263)

166

UK and Europe long-term savings


3,883

(4,050)

(167)

3,457

(3,175)

282

Canada








Fee

F

470

(353)

117

427

(233)

194

Spread/risk

S/R

51

(105)

(54)

75

(107)

(32)

Group savings and retirement


521

(458)

63

502

(340)

162

Fee

F

192

(97)

95

146

(92)

54

Spread/risk

S/R

60

(128)

(68)

77

(146)

(69)

Individual insurance, savings and retirement


252

(225)

27

223

(238)

(15)

Group insurance

S/R

116

(92)

24

112

(89)

23

Mutual funds1

F

69

(78)

(9)

51

(75)

(24)

Canada long-term savings


958

(853)

105

888

(742)

146

Asia and Emerging Markets








Wholly owned long-term savings

F

238

(62)

176

252

(98)

154

Joint ventures long-term savings2


99

(45)

54

99

(31)

68

Asia and Emerging Markets

long-term savings


337

(107)

230

351

(129)

222

Other consolidation/eliminations3


(24)

1

(23)

(14)

3

(11)

Total worldwide long-term savings


5,154

(5,009)

145

4,682

(4,043)

639

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

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

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

 

Long-term savings operations net flows

15 months ended 31 December 2012


Net flows


Fee (F) - Spread/risk (S/R)

3 months to

31 Dec 2012

3 months to

30 Sep 2012

3 months to

30 Jun 2012

3 months to

31 Mar 2012

3 months to

31 Dec 2011


£m

£m

£m

£m

£m

UK







Individual SIPP

F

115

171

198

367

312

Other individual pensions

F

(573)

(427)

(362)

(403)

(385)

Investment bonds

F

(224)

(244)

(247)

(281)

(255)

Mutual funds

F

278

265

271

282

215

Legacy life (excluding conventional with profits)

F

(56)

(70)

(57)

(46)

(33)

Wealth

F

167

182

205

185

112

UK retail fee business


(293)

(123)

8

104

(34)

Corporate pensions

F

196

265

392

371

403

UK retail and corporate fee business


(97)

142

400

475

369

Institutional pensions

F

212

740

141

739

307

Conventional with profits

F

(408)

(404)

(354)

(281)

(401)

UK total fee business


(293)

478

187

933

275

Annuities

S/R

(96)

(147)

(154)

(150)

(164)

Protection

S/R

5

3

7

2

5

UK long-term savings


(384)

334

40

785

116

Europe







Fee

F

214

154

151

182

166

Spread/risk

S/R

3

-

(2)

8

-

Europe long-term savings


217

154

149

190

166

UK and Europe long-term savings


(167)

488

189

975

282

Canada







Fee

F

117

292

102

(11)

194

Spread/risk

S/R

(54)

(57)

(52)

(61)

(32)

Group savings and retirement


63

235

50

(72)

162

Fee

F

95

52

88

96

54

Spread/risk

S/R

(68)

(65)

(68)

(75)

(69)

Individual insurance, savings and

retirement


27

(13)

20

21

(15)

Group insurance

S/R

24

24

23

21

23

Mutual funds

F

(9)

-

(2)

(5)

(24)

Canada long-term savings


105

246

91

(35)

146

Asia and Emerging Markets







Wholly owned long-term savings

F

176

151

155

123

154

Joint ventures long-term savings1


54

55

37

103

68

Asia and Emerging Markets

long-term savings


230

206

192

226

222

Other consolidation/eliminations2


(23)

(26)

(20)

(44)

(11)

Total worldwide long-term savings


145

914

452

1,122

639

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

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

 

 

 

 

 

4.5 Group assets under administration and net flows continued 

Investment operations

12 months ended 31 December 2012



Opening AUM at

1 Jan 2012

Gross

flows

Redemptions

Net

flows

Market

and other

movements

Net

movement

in AUM

Closing

AUM at

31 Dec 2012



£m

£m

£m

£m

£m

£m

£m

UK

Mutual funds1

10,810

5,029

(2,528)

2,501

980

3,481

14,291


Private equity

3,310

117

(142)

(25)

(147)

(172)

3,138


Segregated funds

13,248

388

(2,773)

(2,385)

1,520

(865)

12,383


Pooled property funds

1,953

189

(5)

184

(121)

63

2,016

Total UK

29,321

5,723

(5,448)

275

2,232

2,507

31,828

Europe

5,316

2,950

(852)

2,098

547

2,645

7,961

Total UK and Europe

34,637

8,673

(6,300)

2,373

2,779

5,152

39,789

Canada

Mutual funds1

1,647

283

(343)

(60)

52

(8)

1,639


Separate mandates

3,815

235

(1,216)

(981)

13

(968)

2,847

Total Canada

5,462

518

(1,559)

(1,041)

65

(976)

4,486

Asia and Emerging Markets









India2

2,711

454

-

454

141

595

3,306


Other

1,009

2,030

(310)

1,720

106

1,826

2,835

Total Asia and Emerging Markets

3,720

2,484

(310)

2,174

247

2,421

6,141









Total worldwide investment products excluding money market and related funds

43,819

11,675

(8,169)

3,506

3,091

6,597

50,416


UK money market funds3

52

-

-

-

(52)

(52)

-


India cash funds3

1,222

(101)

-

(101)

75

(26)

1,196

Total worldwide investment products

45,093

11,574

(8,169)

3,405

3,114

6,519

51,612

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

Opening AUM at

1 Jan 2012

Gross

flows

Redemptions

Net

flows

Market
and other

movements

Net

movement

in AUM

Closing

AUM at

31 Dec 2012


£m

£m

£m

£m

£m

£m

£m

Third party investment products

45,093

11,574

(8,169)

3,405

3,114

6,519

51,612

Third party insurance contracts (new business classified as insurance products)

26,684

5,961

(3,308)

2,653

2,071

4,724

31,408

Total third party assets under management

71,777

17,535

(11,477)

6,058

5,185

11,243

83,020

UK money market funds and India cash funds3

1,274

(101)

-

(101)

23

(78)

1,196

Total third party assets under management excluding money market and related funds

70,503

17,636

(11,477)

6,159

5,162

11,321

81,824

Standard Life Investments - total assets under management

154,876






167,723

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

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

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

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

 

 

 

 

 

 

 

 

Investment operations

Three months ended 31 December 2012


Opening

AUM at

1 Oct 2012

Gross

flows

Redemptions

Net

flows

Market
and other

movements

Net

movement

in AUM

Closing

AUM at

31 Dec 2012



£m

£m

£m

£m

£m

£m

£m

UK

Mutual funds1

13,052

1,656

(672)

984

255

1,239

14,291


Private equity

3,104

39

(26)

13

21

34

3,138


Segregated funds

11,803

141

(85)

56

524

580

12,383


Pooled property funds

1,919

124

(1)

123

(26)

97

2,016

Total UK

29,878

1,960

(784)

1,176

774

1,950

31,828

Europe

6,991

1,006

(333)

673

297

970

7,961

Total UK and Europe

36,869

2,966

(1,117)

1,849

1,071

2,920

39,789

Canada

Mutual funds1

1,666

69

(77)

(8)

(19)

(27)

1,639


Separate mandates

2,938

88

(169)

(81)

(10)

(91)

2,847

Total Canada

4,604

157

(246)

(89)

(29)

(118)

4,486

Asia and Emerging Markets









India2

3,250

259

-

259

(203)

56

3,306


Other

2,188

738

(123)

615

32

647

2,835

Total Asia and Emerging Markets

5,438

997

(123)

874

(171)

703

6,141










Total worldwide investment products excluding money market and related funds

46,911

4,120

(1,486)

2,634

871

3,505

50,416


UK money market funds3

-

-

-

-

-

-

-


India cash funds3

1,425

(259)

-

(259)

30

(229)

1,196

Total worldwide investment products

48,336

3,861

(1,486)

2,375

901

3,276

51,612

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

Opening AUM at

1 Oct 2012

Gross

flows

 

Redemptions

Net

flows

Market

and other

movements

Net

movement

in AUM

Closing

AUM at

31 Dec 2012


£m

£m

£m

£m

£m

£m

£m

Third party investment products            

48,336

3,861

(1,486)

2,375

901

3,276

51,612

Third party insurance contracts (new business classified as insurance products)

30,452

1,498

(990)

508

448

956

31,408

Total third party assets under management

78,788

5,359

(2,476)

2,883

1,349

4,232

83,020

UK money market funds and India cash funds3

1,425

(259)

-

(259)

30

(229)

1,196

Total third party assets under management excluding money market and related funds

77,363

5,618

(2,476)

3,142

1,319

4,461

81,824

Standard Life Investments - total assets under management

163,422






167,723

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

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

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

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



4.6 Analysis of new business continued 

Long-term savings operations new business

15 months ended 31 December 2012


PVNBP


Fee (F) - Spread/risk (S/R)

3 months to

31 Dec 20121

3 months to

30 Sep 2012

3 months to

30 Jun 2012

3 months to

31 Mar 2012

3 months to

31 Dec 20111


£m

£m

£m

£m

£m

UK







Individual SIPP

F

666

668

777

892

730

Other individual pensions

F

49

66

132

94

53

Investment bonds

F

42

34

36

38

31

Mutual funds

F

445

427

462

454

376

UK retail fee business


1,202

1,195

1,407

1,478

1,190

Corporate pensions

F

690

635

1,058

937

666

UK retail and corporate fee business


1,892

1,830

2,465

2,415

1,856

Institutional pensions

F

919

1,025

848

1,105

711

UK total fee business


2,811

2,855

3,313

3,520

2,567

Annuities

S/R

156

106

100

100

82

Protection

S/R

-

-

1

-

-

UK long-term savings


2,967

2,961

3,414

3,620

2,649

Europe







Fee

F

475

221

197

262

347

Spread/risk

S/R

10

8

6

11

17

Europe long-term savings


485

229

203

273

364

UK and Europe long-term savings


3,452

3,190

3,617

3,893

3,013

Canada







Fee

F

419

421

573

199

248

Spread/risk

S/R

58

7

112

39

54

Group savings and retirement


477

428

685

238

302

Fee

F

192

123

166

187

146

Spread/risk

S/R

33

40

29

31

53

Individual insurance, savings and retirement


225

163

195

218

199

Group insurance

S/R

214

165

137

164

145

Mutual funds

F

69

63

66

77

51

Canada long-term savings


985

819

1,083

697

697








Asia and Emerging Markets







Wholly owned long-term savings

F

299

227

248

255

316

India2


111

91

70

163

96

China2


18

18

19

32

20

Joint ventures long-term savings


129

109

89

195

116

Asia and Emerging Markets

long-term savings


428

336

337

450

432

Total worldwide long-term savings


4,865

4,345

5,037

5,040

4,142

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

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

 


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