SLI reports 67% increase in third party sales

The company says it took over £5bn in net flows across its global absolute return strategies and fixed income funds, with a strong pipeline of new business.

SLI says it also benefited from its 40% stake in HDFC Asset Management, which reported assets under management of £11.4b at 31 December 2009.

Meanwhile, parent company Standard Life says operating profits at its UK business dipped 23% in 2009 as a result of the "challenging" market conditions.

The company says profits on a European Embedded Value (EEV) basis in the UK fell to £506m in 2009, down from £658m the previous year. However, on an IFRS basis, underlying profits climbed 9% to £259m.

Globally, the insurer says its 2009 operating profit slipped 1.5%, well above expectations of a steeper drop, thanks to strong performance in its growing Asian business.

Operating profits on an EEV basis came in at £919m, compared to a year-ago profit of £933m. On a statutory basis, underlying profit before tax came in at £291m, almost double 2008's figure of £154m.

Standard Life said a year ago it aimed to cut costs by £75m by the end of 2010, and the insurer says it already more than halfway there, having so far £47m as it restructures customer service operations.

This included aligning its UK distribution and marketing operating models, which led to a headcount reduction of about 200 individuals.

David Nish, promoted to Standard Life CEO in October, says: "2009 was a successful year for Standard Life in which we delivered against our strategic objectives and built a strong platform for future profitable growth.

"Today's announcement highlights good profits and healthy cash flow for the year, and the ongoing delivery of efficiency savings in our business despite the difficult and uncertain year for financial markets. Standard Life starts 2010 in a good position."

Categories: Investment

Tags: Standard life investments

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