Net flows into Standard Life International, including its offshore bond business but excluding its Chinese and Indian joint ventures, were down 22% from £0.9bn to £0.7bn during the first six months of 2012 – much in line with the market.
Standard Life said the fall was partly due to the volatile market environment but also because in the first half of 2011 it managed to secure a number of large cases in its offshore bond business.
Despite slowing inflows, operating profit over the period was up marginally for the wholly owned segments of the international business, increasing by 5% from £19m to £20m.
Standard Life International’s joint ventures – HDFC Life in India and Heng An Standard Life in China – also saw a profit, returning £8m, bringing the operating return on the equity owned up to 14.5%.
Nathan Parnaby, who was installed as chief executive of Standard Life Asia and emerging markets in June, said: “Our international business operates in markets and market segments with significant growth potential, offering propositions centred on flexible investment solutions, innovative life assurance wrappers and digital capabilities.
“The volatile market environment in the first half of 2012 led to a slow down in growth and adversely impacted our results due to currency movements. Despite this we maintained our market position, placing us well for future growth.”
At the group level the company delivered very strong first half results, with operating profit increasing 15% to £302m, much ahead of expectations. This is despite falls in new business for its long term savings and a drop in third party net inflows.
