Standard Life Financial Inc. has reported a 2% increase in premiums and deposits to $1.2 billion in the third quarter of 2011.
The Montreal-based company says the results were due to strong sales and market share growth in retail segregated funds and its group insurance and disability management business.
“Standard Life is in a favourable position in Canada,” said president Joseph Iannicelli in a news release. “The shift to position ourselves as a savings and investment company, and our focus on capital efficient products has meant that declines in equity markets and interest rate levels have not materially impacted our results.”
Premiums and deposits for retail products were up 4% to $377 million in the quarter, compared with $361 million for the same quarter of 2010.
Growth continued to be driven by strong demand for segregated funds, up 32%. The increase was offset by a 30% decrease in mutual funds.
Premiums in group insurance and disability management services grew 4% to $173 million, up from $166 million in the same quarter in 2010.
Standard Life also said the large volume of new sales produced in the quarter will bring in future recurring premium renewals.
Premiums and deposits in group savings and retirement remained at $630 million. Despite the depressed market for new business, premiums and deposits in the company’s core business segment of DC plans were up 7% to $499 million in the quarter.
“Although Standard Life in Canada expects the equity and credit markets to remain uncertain, it anticipates continued success in the last part of 2011,” the company said.