Standard Life Financial saw its premiums and deposits reach $1.6 billion in the third quarter of 2012.
It says this strong performance was largely driven by its group savings and retirement business, which grew by 56% over the quarter.
Assets under administration were 12% higher—an increase of $3 billion since the end of 2011—due to positive net flows and market appreciation.
“We focus on opportunities in long-term savings and investments,” says Charles Guay, president. “We’re seeing strong momentum in the pipeline of new pension business coming in.”
He adds, “During the quarter, we also announced our first Canadian dollar debt issuance raising $400 million.”
The company reports growth in all three of its major business segments .
Premiums and deposits from the group savings and retirement business amounted to $984 million, up from $630 million in 2011, with defined contribution plans growing 13% to $565 million.
The business from group insurance and disability management activities grew 4% to $180 million, driven by an 8% increase in disability management premiums.
Premiums and deposits for retail savings and retirement solutions were boosted by 7% to $358 million. The increase was driven by strong mutual fund sales, as well as the success of the company’s traditional retail segregated funds.
Positive mutual fund results were a direct result of better fund performance in fixed income and yield-oriented products.
In terms of their economic outlook, Standard Life says the low interest rate environment and uncertain financial markets in Canada do present some challenges. But, they predict the economy will remain steady.