Standard Life 2009 profits up 400%

10 March 2010 8:06 am | By Helen Pow

The firm says this includes a European embedded value operating profit of £919m compared to £933m in 2008 and a non-operating loss, which is mainly stockmarket driven, of £445m compared to a loss of more than £1bn the previous year. 

On an IFRS basis, profit for the year was £180m compared with £17m for 2008. This includes profit attributable to shareholders after tax of £213m, up from £100m the previous year and losses attributable to non-controling interests of £33m compared with a loss in 2008 of £83m.

Total IFRS underlying profit before tax for the firm’s UK business increased to £259m for the year, from £238m in 2008.

UK life and pensions underlying profit before tax fell by 8 per cent to £184m from 201m the previous year while Standard Life’s savings and mortgages business saw underlying profit increase by 131 per cent to £60m up from £26m in 2008.

Underlying profitability in the firm’s healthcare business, which is rumoured to be up for sale, increased to £15m from £11m in 2008.

At the end of December 2009, total assets under administration had increased 13 per cent to £177.6bn compared with £156.8bn for the same time the previous year.

Standard Life’s full year dividend increased by 4 per cent to 12.24p in 2009 from 11.77p in 2008. The firm is aiming to make a further £100m of efficiency savings by 2012 and would not rule out job cuts.

Chief Executive David Nish 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. We continued to grow customer assets, generated further value from back book management, and maintained a robust capital position through our disciplined approach to risk management.

“Standard Life starts 2010 in a good position. We will continue to drive shareholder value through being a customer-centric business, focused on long-term savings and investments propositions.

“We are stepping up our investment in our leading corporate and retail propositions during 2010 and are excited by the many opportunities across our markets. We have also announced an increase to our efficiency targets which will improve margins. These actions will enable Standard Life to grow profits more strongly.”

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