Offshore assets on the company’s platform rose to £2.5bn ($3.1bn, €2.9bn) in 2016, up from £2.1bn at 31 December 2015, according to the insurer’s full year results.
Total AUA for international bonds also surged by 15% in the same period to £5.5bn, up from £4.8bn at 31 December 2015.
Indian expansion
Chief executive Keith Skeoch said Standard Life plans to expand into India as the company continues to “make good progress” in creating a “world-class investment company”.
The insurer recently increased its stake in Indian insurance firm HDFC Life, which it aims to combine with New Delhi-based insurer Max Life to create a large private life insurance business in India
“The increase in the stake in HDFC Life and the proposed combination with Max Life will increase our exposure to the attractive and fast growing Indian market,” he said in a statement on Friday.
Skeoch added that Standard Life’s acquisition of the Elevate platform from Axa last May “has strengthened our leading position in the advised platform market”.
Last November, the life insurer confirmed that Elevate will continue as a distinct platform after months of speculation that it could be combined with the Standard Life’s Wrap proposition.
9% rise in profits
Overall, assets under administration soared by 16% to £357.1bn with net outflows of £2.6bn, representing less than 1% of opening assets, “driven largely by our mature books of business”, said Standard Life in a statement.
The insurer and asset manager also posted a forecast-beating 9% in 2016 operating profit, helped by increasing client diversification.
Operating profit before tax was £723m, compared to the £684m which the company had predicted.
Fee based revenue was up 5% to £1.6bn, while growth channels revenue rose 10% to £1.2bn.
Annuity sales compensation
Standard Life also confirmed that it has set aside £175m to cover the cost of redress as part of its review of non-advised annuity sales.
It emerged last year the provider is carrying out a review of all non-advised annuity sales from 2008 into whether customers were properly explained the option of taking out an enhanced annuity.
At the time the UK’s Financial Conduct Authority (FCA) said a small number of firms were facing enforcement after a review of 1,200 non-advised sales at seven firms.
Last October, investment banking firm Jefferies estimated the cost of redress to Standard Life to be around £125m.
Standard Life’s full-year results show the actual figure to be higher at £175m.
