The company’s wholly-owned Hong Kong, Singapore and Dubai operations, the last two of which were launched within the previous 18 months, saw a combined loss in 2013 of £11m, a £6m greater loss than in 2012.
Profit was hit by continued expenses, totalling £65m, from launching in Dubai, expanding in Singapore and deferred acquisition costs in Hong Kong.
However, fee based revenue increased by 16% from £46m in 2012 to £54m last year, while assets under administration increased by 38% to £296m from £215m in 2012.
Asia and emerging markets chief executive Alan Armitage said: “It was another important year as we continued to invest in our new markets in Singapore and Dubai and establish our operational hub in Hong Kong, bringing decision making and functional support closer to the customers we serve.
“It is encouraging to see the ongoing growth of assets and flows in all of our wholly-owned businesses.”
Armitage also highlighted broker and IFA related sales within its Hong Kong business which were by 46% to £374m, with net flows rising by 28% to £55m.
The loss generated within the wholly owned portions of Standard Life’s Asia and emerging markets was slightly offset by a £5m profit from its joint venture businesses in China and India, although this profit was still down 38% from 2012.
In China, Standard Life said sales from its Heng An Standard Life business were down 14% to £77m “as a result of strategic actions taken to focus on sustainable growth by targeting higher margin regular premium business”. Meanwhile in India, its HDFC business saw sales fall by 3% to £388m.
These falls are reflected in net flows for the two businesses which were down 7% from £249m to £231m. Assets under administration however increased 7% from £1.5bn to $1.6bn.
Total combined sales for both the wholly owned and joint venture businesses were up 25% to £933m.
“We are focused on delivering profitable growth through our two life joint ventures and through the expansion of our retail savings and investments in Asia and the Middle East,” added Armitage.
“We remain well positioned to drive forward our ambitions.”
