Half Yearly Report - Part 5 of 5

RNS Number : 2321O

Standard Life plc

05 August 2014

 



Standard Life plc

Half year results 2014

Part 5 of 5

6.    Supplementary information

6.1  Group assets under administration and net flows

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

Group assets under administration (summary)

Six months ended 30 June 2014

	Opening AUA at 1 Jan 2014	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 30 Jun 2014
	£bn	£bn	£bn	£bn	£bn	£bn
Total AUA:
Fee business	210.1	17.1	(12.1)	5.0	3.6	218.7
Spread/risk business	23.5	0.7	(1.2)	(0.5)	0.7	23.7
Other (incl. joint ventures)	10.6	0.2	(0.1)	0.1	1.0	11.7
Total AUA	244.2	18.0	(13.4)	4.6	5.3	254.1
Fee business:
UK retail new1	33.8	3.1	(1.6)	1.5	0.9	36.2
UK retail old	33.5	0.3	(1.4)	(1.1)	0.6	33.0
Corporate	29.2	1.8	(0.9)	0.9	(0.2)	29.9
UK retail and corporate	96.5	5.2	(3.9)	1.3	1.3	99.1
Institutional pensions	25.3	2.1	(1.4)	0.7	0.8	26.8
Conventional with profits	2.9	-	(0.5)	(0.5)	0.1	2.5
UK	124.7	7.3	(5.8)	1.5	2.2	128.4
Europe1	16.1	1.3	(0.6)	0.7	0.3	17.1
Standard Life Investments third party1	102.4	11.9	(7.7)	4.2	1.4	108.0
Canada retail	4.3	0.6	(0.3)	0.3	0.1	4.7
Canada corporate	13.0	0.9	(0.8)	0.1	0.5	13.6
Canada	17.3	1.5	(1.1)	0.4	0.6	18.3
Asia and Emerging Markets (wholly owned)	0.3	-	-	-	-	0.3
Consolidation/eliminations1,2	(50.7)	(4.9)	3.1	(1.8)	(0.9)	(53.4)
Total fee business	210.1	17.1	(12.1)	5.0	3.6	218.7
Spread/risk business:
UK	14.6	0.2	(0.6)	(0.4)	0.5	14.7
Europe	0.5	-	-	-	0.1	0.6
Canada	8.4	0.5	(0.6)	(0.1)	0.1	8.4
Total spread/risk business	23.5	0.7	(1.2)	(0.5)	0.7	23.7
Other (incl. joint ventures)	10.6	0.2	(0.1)	0.1	1.0	11.7
Group assets under administration	244.2	18.0	(13.4)	4.6	5.3	254.1

¹      From 1 January 2014, Standard Life Wealth is reported as part of Standard Life Investments, previously it was reported in UK & Europe. Comparatives have been restated.

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.

6.1  Group assets under administration and net flows continued

Group assets under administration (summary)

Six months ended 30 June 2013

	Opening AUA at 1 Jan 2013	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 30 Jun 2013
	£bn	£bn	£bn	£bn	£bn	£bn
Total AUA:
Fee business	180.7	17.9	(11.1)	6.8	9.0	196.5
Spread/risk business	25.7	0.8	(1.2)	(0.4)	(0.5)	24.8
Other (incl. joint ventures)	11.7	0.2	(0.1)	0.1	(0.3)	11.5
Total AUA	218.1	18.9	(12.4)	6.5	8.2	232.8
Fee business:
UK retail new1	27.6	2.9	(1.3)	1.6	1.3	30.5
UK retail old	31.7	0.3	(1.6)	(1.3)	2.1	32.5
Corporate	24.5	1.6	(1.1)	0.5	1.5	26.5
UK retail and corporate	83.8	4.8	(4.0)	0.8	4.9	89.5
Institutional pensions	21.3	3.2	(1.3)	1.9	0.8	24.0
Conventional with profits	4.1	0.1	(0.8)	(0.7)	0.1	3.5
UK	109.2	8.1	(6.1)	2.0	5.8	117.0
Europe1	13.9	1.1	(0.6)	0.5	0.8	15.2
Standard Life Investments third party1	84.8	13.2	(5.8)	7.4	3.3	95.5
Canada retail	3.9	0.5	(0.4)	0.1	0.2	4.2
Canada corporate	12.0	0.9	(0.8)	0.1	0.7	12.8
Canada	15.9	1.4	(1.2)	0.2	0.9	17.0
Asia and Emerging Markets (wholly owned)	0.2	-	-	-	0.1	0.3
Consolidation/eliminations1,2	(43.3)	(5.9)	2.6	(3.3)	(1.9)	(48.5)
Total fee business	180.7	17.9	(11.1)	6.8	9.0	196.5
Spread/risk business:
UK	15.3	0.3	(0.6)	(0.3)	(0.3)	14.7
Europe	0.5	-	-	-	0.1	0.6
Canada	9.9	0.5	(0.6)	(0.1)	(0.3)	9.5
Total spread/risk business	25.7	0.8	(1.2)	(0.4)	(0.5)	24.8
Other (incl. joint ventures)	11.7	0.2	(0.1)	0.1	(0.3)	11.5
Group assets under administration	218.1	18.9	(12.4)	6.5	8.2	232.8

¹      From 1 January 2014, Standard Life Wealth is reported as part of Standard Life Investments, previously it was reported in UK & Europe. Comparatives have been restated.

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.

Group assets under administration (summary)

12 months ended 31 December 2013

	Opening AUA at 1 Jan 2013	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 31 Dec 2013
	£bn	£bn	£bn	£bn	£bn	£bn
Total AUA:
Fee business	180.7	33.7	(23.4)	10.3	19.1	210.1
Spread/risk business	25.7	1.6	(2.5)	(0.9)	(1.3)	23.5
Other (incl. joint ventures)	11.7	0.4	(0.2)	0.2	(1.3)	10.6
Total AUA	218.1	35.7	(26.1)	9.6	16.5	244.2
Fee business:
UK retail new1	27.6	5.5	(2.7)	2.8	3.4	33.8
UK retail old	31.7	0.6	(3.2)	(2.6)	4.4	33.5
Corporate	24.5	4.3	(2.3)	2.0	2.7	29.2
UK retail and corporate	83.8	10.4	(8.2)	2.2	10.5	96.5
Institutional pensions	21.3	5.2	(3.3)	1.9	2.1	25.3
Conventional with profits	4.1	0.1	(1.6)	(1.5)	0.3	2.9
UK	109.2	15.7	(13.1)	2.6	12.9	124.7
Europe1	13.9	2.5	(1.2)	1.3	0.9	16.1
Standard Life Investments third party1	84.8	23.2	(12.8)	10.4	7.2	102.4
Canada retail	3.9	1.0	(0.7)	0.3	0.1	4.3
Canada corporate	12.0	1.8	(1.5)	0.3	0.7	13.0
Canada	15.9	2.8	(2.2)	0.6	0.8	17.3
Asia and Emerging Markets (wholly owned)	0.2	0.1	(0.1)	-	0.1	0.3
Consolidation/eliminations1,2	(43.3)	(10.6)	6.0	(4.6)	(2.8)	(50.7)
Total fee business	180.7	33.7	(23.4)	10.3	19.1	210.1
Spread/risk business:
UK	15.3	0.6	(1.3)	(0.7)	0.0	14.6
Europe	0.5	-	-	-	-	0.5
Canada	9.9	1.0	(1.2)	(0.2)	(1.3)	8.4
Total spread/risk business	25.7	1.6	(2.5)	(0.9)	(1.3)	23.5
Other (incl. joint ventures)	11.7	0.4	(0.2)	0.2	(1.3)	10.6
Group assets under administration	218.1	35.7	(26.1)	9.6	16.5	244.2

¹      From 1 January 2014, Standard Life Wealth is reported as part of Standard Life Investments, previously it was reported in UK & Europe. Comparatives have been restated.

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.

6.1  Group assets under administration and net flows continued

Group assets under administration

Six months ended 30 June 2014

	Fee (F) - Spread/risk (S/R)	Opening AUA at 1 Jan 2014	Gross flows	Redemptions	Net flows	Market and other movements	Closing AUA at 30 Jun 2014
		£bn	£bn	£bn	£bn	£bn	£bn
UK
UK retail new fee business 1	F	33.8	3.1	(1.6)	1.5	0.9	36.2
UK retail old fee business	F	33.5	0.3	(1.4)	(1.1)	0.6	33.0
UK retail fee business		67.3	3.4	(3.0)	0.4	1.5	69.2
Corporate pensions	F	29.2	1.8	(0.9)	0.9	(0.2)	29.9
UK retail and corporate fee business		96.5	5.2	(3.9)	1.3	1.3	99.1
Institutional pensions	F	25.3	2.1	(1.4)	0.7	0.8	26.8
Conventional with profits	F	2.9	-	(0.5)	(0.5)	0.1	2.5
UK total fee business	F	124.7	7.3	(5.8)	1.5	2.2	128.4
Annuities	S/R	14.6	0.2	(0.6)	(0.4)	0.5	14.7
Assets not backing products		5.7	-	-	-	0.5	6.2
UK long-term savings		145.0	7.5	(6.4)	1.1	3.2	149.3
Europe
Fee1	F	16.1	1.3	(0.6)	0.7	0.3	17.1
Spread/risk	S/R	0.5	-	-	-	0.1	0.6
Europe long-term savings		16.6	1.3	(0.6)	0.7	0.4	17.7
UK and Europe long-term savings		161.6	8.8	(7.0)	1.8	3.6	167.0
Canada
Corporate pensions fee	F	13.0	0.9	(0.8)	0.1	0.5	13.6
Corporate pensions spread/risk	S/R	3.2	0.1	(0.2)	(0.1)	-	3.1
Corporate pensions		16.2	1.0	(1.0)	-	0.5	16.7
Corporate benefits	S/R	0.5	0.2	(0.2)	-	-	0.5
Retail fee	F	4.3	0.6	(0.3)	0.3	0.1	4.7
Retail spread/risk	S/R	4.7	0.2	(0.2)	-	0.1	4.8
Asset not backing products		1.7	-	-	-	(0.1)	1.6
Canada long-term savings		27.4	2.0	(1.7)	0.3	0.6	28.3
Asia and Emerging Markets
Wholly owned long-term savings	F	0.3	-	-	-	-	0.3
Joint ventures long-term savings		1.6	0.2	(0.1)	0.1	0.1	1.8
Asia and Emerging Markets long-term savings		1.9	0.2	(0.1)	0.1	0.1	2.1
Total worldwide long-term savings		190.9	11.0	(8.8)	2.2	4.3	197.4
Other corporate assets		2.0	-	-	-	0.5	2.5
Standard Life Investments third party assets under management1		102.4	11.9	(7.7)	4.2	1.4	108.0
Consolidation and elimination adjustments1,2,3		(51.1)	(4.9)	3.1	(1.8)	(0.9)	(53.8)
Group assets under administration		244.2	18.0	(13.4)	4.6	5.3	254.1

¹        From 1 January 2014, Standard Life Wealth is reported as part of Standard Life Investments, previously it was reported in UK & Europe. Comparatives have been restated.

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 £36.6bn (31 December 2013: £35.3bn), UK mutual funds and other £15.3bn (31 December 2013: £14.0bn) and Canada mutual funds of £1.5bn (31 December 2013: £1.5bn).

Group assets under administration net flows

15 months ended 30 June 2014

	Net flows
	3 months to 30 Jun 2014	3 months to 31 Mar 2014	3 months to 31 Dec 2013	3 months to 30 Sept 2013	3 months to 30 Jun 2013
	£bn	£bn	£bn	£bn	£bn
Fee business	2.4	2.6	2.1	1.4	3.8
Spread/risk business	(0.2)	(0.3)	(0.2)	(0.3)	(0.1)
Other (incl. joint ventures)	-	0.1	-	0.1	-
Total	2.2	2.4	1.9	1.2	3.7
Fee business:
UK retail new	0.7	0.8	0.4	0.8	0.8
UK retail old	(0.5)	(0.6)	(0.6)	(0.7)	(0.6)
Corporate	0.4	0.5	1.1	0.4	0.2
UK retail and corporate	0.6	0.7	0.9	0.5	0.4
Institutional pensions	0.7	-	0.2	(0.2)	0.9
Conventional with profits	(0.3)	(0.2)	(0.3)	(0.5)	(0.4)
UK	1.0	0.5	0.8	(0.2)	0.9
Europe	0.3	0.4	0.3	0.5	0.3
Standard Life Investments third party	2.2	2.0	1.6	1.4	4.2
Canada	0.1	0.3	0.3	0.1	-
Asia and Emerging Markets (wholly owned)	-	-	(0.1)	0.1	-
Consolidation/eliminations	(1.2)	(0.6)	(0.8)	(0.5)	(1.6)
Total fee business	2.4	2.6	2.1	1.4	3.8
Spread/risk business:
UK	(0.2)	(0.2)	(0.2)	(0.2)	(0.1)
Europe	-	-	-	-	-
Canada	-	(0.1)	-	(0.1)	-
Total spread/risk business	(0.2)	(0.3)	(0.2)	(0.3)	(0.1)
Total other (incl. joint ventures)	-	0.1	-	0.1	-
Total Group net flows	2.2	2.4	1.9	1.2	3.7

Standard Life Investments assets under management net flows

15 months ended 30 June 2014

	Net flows
	3 months to 30 Jun 2014	3 months to 31 Mar 2014	3 months to 31 Dec 2013	3 months to 30 Sept 2013	3 months to 30 Jun 2013
	£bn	£bn	£bn	£bn	£bn
UK	1.4	0.4	0.6	0.7	1.8
Europe	0.1	0.5	0.2	0.2	1.1
Canada	0.2	0.2	0.3	0.2	0.2
US	0.3	0.6	0.3	0.5	0.8
Asia Pacific	-	0.1	0.1	-	0.2
India	0.2	0.2	0.1	(0.2)	0.1
Total third party net flows	2.2	2.0	1.6	1.4	4.2
Equities	(0.1)	0.2	(0.2)	-	(0.2)
Fixed income	-	-	(0.2)	0.2	0.5
Multi asset	1.4	1.3	1.0	1.1	3.1
Real estate	0.2	-	0.1	0.1	0.1
MyFolio	0.4	0.4	0.4	0.3	0.4
Other	0.3	0.1	0.5	(0.3)	0.3
Total third party net flows	2.2	2.0	1.6	1.4	4.2
Wholesale	1.0	1.6	0.8	1.2	1.5
Institutional	0.9	0.6	0.5	0.3	2.4
Wealth	0.1	(0.1)	-	0.2	0.1
India cash funds	0.2	(0.1)	0.3	(0.3)	0.2
Total third party net flows	2.2	2.0	1.6	1.4	4.2
Total asset management net flows	1.5	1.5	1.0	0.4	3.6

6.2  Investment operations

Six months ended 30 June 2014

Third party assets under management by geography

		Opening AUM at 1 Jan 2014	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2014
		£bn	£bn	£bn	£bn	£bn	£bn	£bn
UK	Wholesale	19.6	4.1	(2.5)	1.6	-	1.6	21.2
	Institutional	42.9	2.4	(2.2)	0.2	0.7	0.9	43.8
	Wealth	5.8	0.3	(0.3)	-	0.1	0.1	5.9
		68.3	6.8	(5.0)	1.8	0.8	2.6	70.9
Europe	Wholesale	3.8	1.0	(0.8)	0.2	(0.6)	(0.4)	3.4
	Institutional	6.6	0.5	(0.1)	0.4	0.1	0.5	7.1
		10.4	1.5	(0.9)	0.6	(0.5)	0.1	10.5
Canada	Wholesale	3.8	0.6	(0.3)	0.3	0.4	0.7	4.5
	Institutional	9.8	0.7	(0.6)	0.1	0.1	0.2	10.0
		13.6	1.3	(0.9)	0.4	0.5	0.9	14.5
US	Institutional	4.2	1.5	(0.6)	0.9	0.1	1.0	5.2
Asia Pacific	Wholesale	1.1	0.4	(0.2)	0.2	(0.2)	-	1.1
	Institutional	0.7	-	(0.1)	(0.1)	-	(0.1)	0.6
		1.8	0.4	(0.3)	0.1	(0.2)	(0.1)	1.7
India	Wholesale	2.9	0.3	-	0.3	0.6	0.9	3.8
	Cash funds	1.2	0.1	-	0.1	0.1	0.2	1.4
		4.1	0.4	-	0.4	0.7	1.1	5.2
Total	Wholesale	31.2	6.4	(3.8)	2.6	0.2	2.8	34.0
	Institutional	64.2	5.1	(3.6)	1.5	1.0	2.5	66.7
	Wealth	5.8	0.3	(0.3)	-	0.1	0.1	5.9
	Cash funds	1.2	0.1	-	0.1	0.1	0.2	1.4
Total third party AUM		102.4	11.9	(7.7)	4.2	1.4	5.6	108.0

Third party assets under management by asset class

	Opening AUM at 1 Jan 2014	Gross flows	Redemptions	Net flows	Market and other movements		Net movement in AUM	Closing AUM at 30 Jun 2014
	£bn	£bn	£bn	£bn	£bn		£bn	£bn
Equities	19.5	1.7	(1.6)	0.1	0.6		0.7	20.2
Fixed Income	26.8	1.9	(1.9)	-	0.8		0.8	27.6
Multi Asset1	31.4	5.7	(3.0)	2.7	(0.1)		2.6	34.0
Real Estate	6.8	0.5	(0.3)	0.2	0.3		0.5	7.3
MyFolio	4.0	1.0	(0.2)	0.8	-		0.8	4.8
Other2	13.9	1.1	(0.7)	0.4	(0.2)		0.2	14.1
Total third party AUM	102.4	11.9	(7.7)	4.2	1.4		5.6	108.0
Total AUM	189.1	14.4	(11.4)	3.0		3.0	6.0	195.1

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

²    Comprises cash, private equity and Standard Life Wealth.

     Funds denominated in foreign currencies have been translated to Sterling using the closing exchange rates at 30 June 2014. 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.

Six months ended 30 June 2013

Third party assets under management by geography

		Opening AUM at 1 Jan 2013	Gross flows	Redemptions	Net flows	Market and other movements	Net movement in AUM	Closing AUM at 30 Jun 2013
		£bn	£bn	£bn	£bn	£bn	£bn	£bn
UK	Wholesale	14.9	3.5	(1.6)	1.9	0.6	2.5	17.4
	Institutional	39.4	3.5	(2.0)	1.5	1.5	3.0	42.4
	Wealth	1.8	0.4	(0.1)	0.3	-	0.3	2.1
		56.1	7.4	(3.7)	3.7	2.1	5.8	61.9
Europe	Wholesale	2.4	1.2	(0.6)	0.6	0.4	1.0	3.4
	Institutional	5.6	0.9	(0.1)	0.8	0.2	1.0	6.6
		8.0	2.1	(0.7)	1.4	0.6	2.0	10.0
Canada	Wholesale	3.6	0.4	(0.4)	-	0.2	0.2	3.8
	Institutional	9.4	0.9	(0.6)	0.3	0.1	0.4	9.8
		13.0	1.3	(1.0)	0.3	0.3	0.6	13.6
US	Institutional	2.0	1.5	(0.1)	1.4	0.2	1.6	3.6
Asia Pacific	Wholesale	0.4	0.7	(0.1)	0.6	0.1	0.7	1.1
	Institutional	0.8	-	(0.2)	(0.2)	0.1	(0.1)	0.7
		1.2	0.7	(0.3)	0.4	0.2	0.6	1.8
India	Wholesale	3.3	0.1	-	0.1	(0.1)	-	3.3
	Cash funds	1.2	0.1	-	0.1	-	0.1	1.3
		4.5	0.2	-	0.2	(0.1)	0.1	4.6
Total	Wholesale	24.6	5.9	(2.7)	3.2	1.2	4.4	29.0
	Institutional	57.2	6.8	(3.0)	3.8	2.1	5.9	63.1
	Wealth	1.8	0.4	(0.1)	0.3	-	0.3	2.1
	Cash funds	1.2	0.1	-	0.1	-	0.1	1.3
Total third party AUM		84.8	13.2	(5.8)	7.4	3.3	10.7	95.5

Third party assets under management by asset class

	Opening AUM at 1 Jan 2013	Gross flows	Redemptions	Net flows	Market and other movements		Net movement in AUM	Closing AUM at 30 Jun 2013
	£bn	£bn	£bn	£bn	£bn		£bn	£bn
Equities	18.3	1.0	(1.7)	(0.7)	1.4		0.7	19.0
Fixed Income	27.3	2.7	(1.5)	1.2	(0.9)		0.3	27.6
Multi Asset1	22.1	7.4	(1.9)	5.5	1.8		7.3	29.4
Real Estate	6.6	0.3	(0.2)	0.1	-		0.1	6.7
MyFolio	2.2	1.0	(0.2)	0.8	0.1		0.9	3.1
Other2	8.3	0.8	(0.3)	0.5	0.9		1.4	9.7
Total third party AUM	84.8	13.2	(5.8)	7.4	3.3		10.7	95.5
Total AUM	169.5	15.8	(10.1)	5.7		5.7	11.4	180.9

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

²    Comprises cash, private equity and Standard Life Wealth.

     Funds denominated in foreign currencies have been translated to Sterling using the closing exchange rates at 30 June 2013. Investment fund flows are translated at average exchange rates. Gains and losses arising from the translation of funds denominated in foreign currencies are included in the market and other movements column.

6.3  Long-term savings operations new business

Six months ended 30 June 2014

		Single premiums			New regular premiums		PVNBP1
	Fee (F) - Spread/risk (S/R)	6 months to 30 Jun 2014	6 months to 30 Jun 2013	6 months to 30 Jun 2014		6 months to 30 Jun 2013	6 months to 30 Jun 2014	6 months to 30 Jun 2013	Change	Change in constant currency
		£m	£m	£m		£m	£m	£m	%	%
UK
Retail new fee business	F	2,832	2,769	42		37	3,043	2,964	3%	3%
Retail old fee business	F	131	125	9		8	153	143	7%	7%
UK retail fee business		2,963	2,894	51		45	3,196	3,107	3%	3%
Corporate pensions	F	554	518	495		499	2,634	2,818	(7%)	(7%)
UK retail and corporate fee business		3,517	3,412	546		544	5,830	5,925	(2%)	(2%)
Institutional pensions	F	2,007	3,085	1		10	2,011	3,120	(36%)	(36%)
UK total fee business		5,524	6,497	547		554	7,841	9,045	(13%)	(13%)
Spread/risk	S/R	94	186	-		-	95	187	(49%)	(49%)
UK long-term savings		5,618	6,683	547		554	7,936	9,232	(14%)	(14%)
Europe
Fee	F	843	760	18		18	1,007	954	6%	8%
Spread/risk	S/R	7	15	-		-	7	16	(56%)	(56%)
Europe long-term savings		850	775	18		18	1,014	970	5%	7%
UK and Europe long-term savings		6,468	7,458	565		572	8,950	10,202	(12%)	(12%)
Canada
Corporate pensions fee	F	206	172	18		16	522	575	(9%)	5%
Corporate pensions spread/risk	S/R	54	46	2		3	84	118	(29%)	(17%)
Corporate pensions		260	218	20		19	606	693	(13%)	1%
Corporate benefits	S/R	-	-	18		17	199	261	(24%)	(12%)
Retail fee	F	605	499	-		-	605	499	21%	40%
Retail spread/risk	S/R	103	75	-		-	103	75	37%	60%
Canada long-term savings		968	792	38		36	1,513	1,528	(1%)	15%
Asia and Emerging Markets
Wholly owned long-term savings	F	9	9	32		30	215	210	2%	11%
Joint ventures long-term savings		32	44	43		54	223	281	(21%)	(7%)
Asia and Emerging Markets long-term savings		41	53	75		84	438	491	(11%)	1%
Total worldwide long-term savings		7,477	8,303	678		692	10,901	12,221	(11%)	(9%)

¹    Present value of new business premiums (PVNBP) is the industry measure of insurance new business sales under the EEV methodology, calculated as 100% of single premiums plus the expected present value of new regular premiums.

     New business gross sales for overseas operations are calculated using average exchange rates.

7.    Glossary

Acquisition expenses

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

Annuity

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

Assets under administration (AUA)

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

Assets under management (AUM)

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

Assumptions

Variables applied to data used to project expected outcomes.

Board

The board of Directors of the Company.

Burnthrough costs

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

Business unit underlying performance

Business unit underlying performance is operating profit before tax after excluding the impact of spread/risk operating actuarial assumption changes, specific management actions, group centre costs and group centre capital management in the reporting period.

Capital resources (CR)

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

Capital resources requirement (CRR)

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

CFO Forum

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

Company

Standard Life plc.

Constant currency

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

Covered business

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

Deferred acquisition costs (DAC)

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

Deferred income reserve (DIR)

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

Development costs

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

Director

A director of the Company.

Discounting

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

Dividend cover

This is a measure of how easily a company can pay its dividend from profit. It is calculated as profit for the year attributable to equity holders of Standard Life plc divided by the total dividend for that financial period. 

Earnings before interest, tax, depreciation and amortisation (EBITDA)

EBITDA is defined as earnings before interest, taxation, depreciation, amortisation, foreign exchange gains and losses, fair value movements on certain derivatives, restructuring costs and non-controlling interest.

EBITDA margin

This is an industry measure of performance for investment management companies. It is calculated as EBITDA divided by net revenue.

Earnings per share (EPS)

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

Economic assumptions

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

Effective tax rate

Tax expense/ (credit) attributable to equity holders' profits divided by profit before tax attributable to equity holders' profits expressed as a percentage.

European Embedded Value (EEV)

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

EEV operating profit after tax

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

Non-covered business EEV operating profit after tax represents operating profit after tax.

EEV operating capital and cash generation

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

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

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

Executive team

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

Expected return on EEV

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

Experience variances

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

Fair value through profit or loss (FVTPL)

FVTPL is an IFRS measurement basis permitted for assets and liabilities which meet certain criteria. Gains or losses on assets or liabilities measured at FVTPL are recognised directly in the income statement.

Fee based business

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

Financial options and guarantees

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

Free surplus

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

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

Group capital surplus

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

Group, Standard Life Group or Standard Life

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

Group underlying performance

Group underlying performance is Group operating profit before tax after excluding the impact of spread/ risk operating actuarial assumption changes and specific management actions in the reporting period.

Heritage With Profits Fund (HWPF)

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

Individual Capital Assessment (ICA)

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

In-force

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

Internal rate of return (IRR)

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

International Financial Reporting Standards (IFRS)

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

Investment grade

Debt securities with a credit rating of BBB or higher.

Key performance indicators (KPI)

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

Look through

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

Maintenance expenses

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

Mutual fund

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

Net flows

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

Net worth

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

New business contribution (NBC)

The expected present value of all future post tax cash flows attributable to the equity holder from new business, as included within EEV operating profit after tax.

New business strain (NBS)

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

Non-covered business

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

Non-economic assumptions

Assumptions in relation to future levels of mortality, morbidity, persistency and expenses. These assumptions, and variances in relation to these assumptions, are included as operating profit/(loss) under EEV.

Non-participating/non-profit policy

A policy, including a unit linked policy, which is not a participating/with profits policy.

Operating profit

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

Operating profit also excludes the impact of the following items:

·   Restructuring costs and significant corporate transaction expenses

·   Impairment of intangible assets

·   Profit or loss arising on the disposal of a subsidiary, joint venture or associate

·   Amortisation of intangibles acquired in business combinations

·   Where Canadian insurance contract liabilities have changed as a result of a challenge, by either management or a tax authority, to an uncertain tax treatment which has resulted in a change in deferred tax assets for prior years

·   Items which are one-off in nature and outside the control of management and which, due to their size or nature, are not indicative of the long-term operating performance of the Group.

Participating/with profits policy

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

Personal pension plan

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

Present value of in-force business (PVIF)

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

Present value of new business premiums (PVNBP)

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

Profit contribution

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

Proprietary Business Fund

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

PVNBP margin

PVNBP margin is NBC expressed as a percentage of PVNBP.

Recourse cash flow (RCF)

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

Regular premium

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

Required capital

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

Return on equity (RoE)

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

Scheme of Demutualisation (the Scheme)

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

SICAV

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

Single premium

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

SIPP

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

SLAC

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

SLAL

Standard Life Assurance Limited.

SLIL

Standard Life International Limited.

Spread/risk based business

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

Spread/risk margin

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

Time value of options and guarantees (TVOG)

Represents the potential additional cost to equity holders where a financial option or guarantee exists which affects policyholder benefits and is exercisable at the option of the policyholder.

Total shareholder return

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

UK corporate

UK corporate provides workplace pensions, savings and benefits to UK employers and employees. These are sold through corporate benefit consultants, independent financial advisers, or directly to employers.

UK retail

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

Undiscounted payback period

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

Unit linked policy

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

Wrap platform

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

8.    Shareholder information

Registered office

Company registration number: SC286832

Standard Life House

30 Lothian Road

Edinburgh

EH1 2DH

Scotland

Phone: [phone] or 0131 225 2552

For shareholder services call 0845 113 0045

Registrar

Capita Registrars Limited

Auditors

PricewaterhouseCoopers LLP

Solicitors

Slaughter and May

Brokers

JP Morgan Cazenove

Deutsche Bank

Shareholder services

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

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

·   visit our share portal at www.standardlifeshareportal.com

Sign up for ecommunications

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

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

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

Set up a share portal account

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

·      manage your account at a time that suits you

·      download your dividend tax vouchers when you need them

·      view your Standard Life Share Account statement  

Preventing unsolicited mail

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

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

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

Mailing Preference Service (MPS)

DMA House

70 Margaret Street

London

W1W 8SS 

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

Analysis of registered shareholdings as at 30 June 2014

Range of shares	Number of holders	% of total holders	Number of shares	% of total shares
1-1,000	57,668	54.18	26,783,049	1.120
1,001-5,000	42,032	39.49	89,286,979	3.735
5,001-10,000	4,095	3.85	27,551,564	1.153
10,001-100,000	2,113	1.99	47,844,497	2.001
*100,001+	521	0.49	2,199,200,958	91.991
Total	106,429	100	2,390,667,047	100

*    These figures include the Company-sponsored nominee - the Standard Life Share Account - which had 1,108,979 participants holding 934,802,155 shares, and the Unclaimed Asset Trust, which had 71,795 participants holding 26,825,795 shares.

Financial calendar for 2014

Ex-dividend date for 2014 interim dividend	10 September 2014
Record date for 2014 interim dividend	12 September 2014
Last date for DRIP elections for 2014 interim dividend	24 September 2014
Interim dividend payment date	21 October 2014
2014 Q3 trading results and interim management statement	29 October 2014

Contact details

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

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

 

END

 

 

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