The new business figures for SLI fall within the group’s Asia and emerging markets business unit so it is not possible to distinguish the offshore bond sales into the UK. However, Standard Life said net inflows into wholly-owned long-term savings for the business unit in 2012 were £605m, down from £690m in 2011.
Standard Life did however indicate that the shortfall within that business unit was due to the UK sales. It said: “The market disruption caused by the implementation of the RDR and increased competition from commission payers impacted the UK offshore bond market in which Standard Life International…operates.”
SLI is not the first company to note the impact of the RDR on sales of its offshore bonds last year. Yesterday, Legal & General blamed the RDR for an 11% slump in sales, while Axa Wealth last week said it had contributed to a 27% slide.
The Standard Life Group meanwhile, reported operating profit before tax had increased 65% to £900m from £544m in 2011 and that its AUA were £218bn at the end of the year, up from £198bn last year.
Asia and emerging markets
Positive drivers into the Asia and emerging market business unit included, not surprisingly, Standard Life’s operations in Hong Kong and recently launched businesses in Singapore and Dubai.
Perhaps the stand-out performers for Standard Life’s international business however, continues to be its joint ventures in India and China which increased operating profit before tax by 300% compared with 2011, delivering £8m.
In total, the Asia and emerging markets business unit delivered a profit before tax of £5m compared with a £6m loss in 2011.
