Operating profit drop from 500£m (H1 2008) to 346£m (H1 2009).
Cash flow and capital position robust
- Core capital and cash generation after tax of £167m (2008: £143m)
- Financial Groups Directive surplus of £3.1bn (31 December 2008: £3.3bn)1
- Interim dividend of 4.15p, representing 2.0% growth
Positive net flows
- Positive net flows of £2.1bn across the Group (2008: £3.3bn)
- Life and pension PVNBP sales of £7.5bn (2008: £9.1bn)2
Profits impacted by lower financial market levels
- EV operating profit before tax of £348m (2008: £534m)
- IFRS loss after tax attributable to equity holders of £20m (2008: profit £161m)
Strong progress made towards second phase efficiency target
- On track to meet £75m annual efficiency savings target by the end of 2010 – £26m achieved to date
Group Chief Executive Sir Sandy Crombie said:
“The recession has had an inevitable impact on our performance in the first half of 2009. However, today’s results highlight Standard Life’s robust business model and the ongoing resilience of our balance sheet.
“I am particularly pleased with the continued strength of our UK group pensions offering and by Standard Life Investments, where we have achieved good worldwide third party investments net inflows, despite a backdrop of industry slowdown and continuing market volatility. In addition, I am encouraged by the progress that has been made in our Canadian retail product lines following the repositioning of the business.
“We have announced healthy capital and cash generation and have made good progress towards our efficiency target. We have maintained a strong capital position and this enables us to develop the business by investing in our key growth areas.
“With our strong solvency position, proven capital-lite strategy and diversified business offering, I am confident that Standard Life is well positioned.”
Unless otherwise stated, all comparisons are in Sterling and are with the six months ended 30 June 2008.
The full report is available here
