Fourth Quarter New Business

RNS Number : 0266M
St. James's Place PLC
22 January 2009
 



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PRESS RELEASE

22 January 2009


ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES

FOR THE YEAR ENDED 31 DECEMBER 2008


TOTAL NEW SINGLE INVESTMENTS £3.1 BILLION


St. James's Place plc ('SJP'), the wealth management group, today issues its new business figures for the year ended 31 December 2008.


Highlights for the year are:


New business


  • Total new single investments of £3.1 billion (2007: £3.4 billion)
  • Total new business, on an APE basis, of £419.0 million (2007: £428.6 million)
  • Pensions new business up 13% to £194.9 million (2007: £172.3 million)


Funds under management


  • Funds under Management of £16.3 billion down 1% over the final quarter
  • Retention of Funds remains strong and has been maintained at 95%


Partnership numbers at 1,340 up 7%


David Bellamy, Chief Executive, commented:


'Given the extraordinary market conditions that prevailed in the final quarter in particular, we are pleased with these results.


'We are particularly pleased with the total new single investments of £3.1 billion and the continued strong retention of funds under management. As a result funds under management were just 10% lower during a period when world markets moved 30-40% lower.


'Looking ahead to 2009, our advisor based approach to wealth management and the third consecutive year of strong growth in the Partnership numbers, will help us continue to outperform in challenging market conditions. Longer term, we remain confident about achieving our ambitious growth target.'


The details of the announcement are attached.


Enquiries:


David Bellamy

Chief Executive

Tel:

020 7514 1985




Anita Scott 

Brunswick

Tel:

020 7404 5959

Carole Cable





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ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES

FOR THE YEAR ENDED

31 DECEMBER 2008


NEW BUSINESS



Unaudited

3 Months to

31 December 2008


Unaudited

12 Months to

31 December 2008


New PREMIUMS




2008

£'m




2007

£'m




Change

%





2008

£'m




2007

£'m




Change

%


New Regular

Premiums















Pensions

19.8


20.6


(4%)



87.8


72.8


21% 



Protection

5.0


5.7


(12%)



19.1


20.3


(6%) 

















24.8


26.3


(6%)



106.9


93.1


15% 






























New Single

Premiums















Investment

315.3


445.7


(29%)



1,365.5


1,665.4


(18%)



Pensions

267.4


276.7


(3%)



1,070.7


995.1


8% 

















582.7


722.4


(19%)



2,436.2


2,660.5


(8%)
















Unit Trust Sales

(including PEPs and ISAs)



133.6





146.8




(9%)





685.0




694.6




(1%)




















Unaudited

3 Months to

31 December 2008


Unaudited

12 Months to

31 December 2008


New Business

(RP + 1/10th SP)




2008

£'m




2007

£'m




Change

%





2008

£'m




2007

£'m




Change

%
















Investment

44.9


59.2


(24%)



205.0


236.0


(13%)


Pensions

46.5


48.3


(4%)



194.9


172.3


13% 


Protection

5.0


5.7


(12%)



19.1


20.3


(6%)
















Total


96.4


113.2


(15%)




419.0


428.6


(2%)





















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ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES 

FOR THE YEAR ENDED

31 DECEMBER 2008


Notes


1.       New business is calculated in accordance with the standard industry measure of adding together new regular premiums and one-tenth of single premiums and unit trust sales (“APE”).
 
2.       Sales of manufactured business on an APE basis for the twelve months were 85% of the total reported (2007: 87%).

 

Sales of non-manufactured pensions including stakeholder by St. James's Place Partnership have been included in the reported figures under Pensions. These amount to £28.2 million regular premiums (2007: £20.6 million) and £30.5 million single premiums (2007: £27.4 million) for the twelve months to 31 December 2008. This equates to £31.2 million new business premiums (2007: £23.3 million).


Sales of annuities by St. James's Place Partnership have been included in the reported figures under Pensions. These amount to £92.3 million single premiums for the twelve months to 31 December 2008 (2007: £79.9 million) and equate to £9.2 million new business premiums (2007: £8.0 million).


Sales of non-manufactured SIPP single premium business by St. James's Place Partnership amounting to £1.1 million have been included in the reported figures under Pensions for the twelve months to 31 December 2008 (2007: £4.9 million). This equates to £0.1 million new business premiums (2007: £0.5 million).


Sales of protection business by St. James's Place Partnership through a panel of providers have been included in the reported figures under New Regular Premiums Protection. This amounts to £12.4 million of new regular premiums (2007: £11.7 million) for the twelve months to 31 December 2008. This equates to £12.4 million new business premiums (2007: £11.7 million).


Sales of non-manufactured single premium investment business by St. James's Place Partnership amounting to £89.4 million have been included in the reported figures under Investments for the twelve months to 31 December 2008 (2007: £113.6 million). This equates to £8.9 million new business premiums (2007: £11.4 million).

 

3.       The Partnership number of 1,340 includes the first 8 new members joining from the St. James’s Place Academy.

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ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES 

FOR THE YEAR ENDED

31 DECEMBER 2008


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


 
Unaudited
Year Ended
31 December 2008
 
Unaudited
Year Ended
31 December 2007
 
£’bn
 
£’bn
 
 
 
 
Opening funds under management
18.2 
 
15.4 
New money invested
3.0 
 
3.1 
Net investment return
(3.6)
 
0.9 
 
_________
 
_______
 
17.6 
 
19.4 
Regular income withdrawals & maturities
(0.4)
 
(0.3)
Surrenders & part surrenders
(0.9)
 
(0.9)
 
_________
 
_______
Closing funds under management
16.3 
 
18.2 
 
_________
 
_______
Annualised surrender rate as a % of average funds under management
 
5.2%
 
 
5.1%
 
 
 
 

 


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



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