Standard Life’s Irish business attracts €1.14bn of new money

Standard Life Ireland recorded another strong year of growth, with assets under management increasing from €6.9 billion to €8 billion over 2014.

Sales of lump sum investment products rose to over €200 million, while investment only corporate pensions sales were also strong at €380 million.

Nigel Dunne, head of Standard Life Ireland, said the Irish business attracted €1.14 billion of new money, adding that the outlook remains positive for long term investing.

“Greater confidence gives customers the freedom for planning and thinking more about their future, a particularly important when it comes to long term investing,” he said.

“This increased confidence combined with a positive macro environment of low interest rates and strong asset returns, provides a favourable outlook for the Irish pensions and investment market over the next number of years,” he added.

Parent company Standard Life group reported a 19 per cent increase in full-year profit, beating analysts’ estimates, boosted by its asset management unit.

Operating profit, excluding sold businesses, rose to £604 million (€821 million) from 2013, the company said in a statement on Friday.

That compares with the £559 million average estimate of 19 analysts provided by the insurer.

Fee- based revenue grew 14 per cent to £1.4 billion, with the final dividend up 7.8 per cent to 11.43 pence a share.

"We have made good strategic progress during the year," chief executive officer David Nish said in the statement.

“Standard Life Investments has continued to perform strongly and expand internationally. Although investment markets are unsettled and may affect the near-term pace of asset and revenue growth, we are well placed for th future.”

Mr Nish’s growth strategy has been to build the insurer’s fee- based asset management business while cutting the firm’s reliance on operations that require more capital.

In September, the CEO sold the Canadian unit to Manulife Financial for £2.2 billion, sending the shares surging.

Standard Life Investments, run by Keith Skeoch, reported a 45 per cent increase in assets under management to £245.9 billion, boosted by its Ignis Asset Management acquisition.

The unit’s third party net inflows of £1.7 billion were hit by £2.3 billion of previously announced outflows from two mandates and £2.6 billion from an Ignis bond fund.

Additional reporting: Bloomberg