TIDMSL.
RNS Number : 7405X
Standard Life plc
24 February 2017
Standard Life plc
Full Year Results 2016
Part 8 of 8
12. Reports from the Committees of Standard Life Assurance
Limited and the Standard Life Master Trust Co. Ltd.
12.1 Report from the With Profits Committee of Standard Life
Assurance Limited
Whilst the management of its with profits business is the direct
responsibility of the board of Standard Life Assurance Limited
(SLAL), FCA regulations require that a with profits firm's
governance arrangements should make provision for independent
judgement and advice. The SLAL board has established a With Profits
Committee (WPC) for this purpose.
Clifton Melvin,
Chairman, With Profits Committee of Standard Life Assurance
Limited
Membership
All members of the WPC are independent of Standard Life. Their
attendance at WPC meetings was:
Member Attendance
------------------------- ----------
Clifton Melvin, Chairman 10/10
Graham Aslet 10/10
Ross Ainslie(1) 10/10
Finula Cilliers(2) 9/9
------------------------- ----------
(1) Ross Ainslie was appointed for a second term in June
2016.
(2) Finula Cilliers was appointed as a member of the WPC in
March 2016.
The members are appointed by the SLAL board on the
recommendation of the Nomination and Governance Committee.
Directors of the Standard Life plc and SLAL boards, the UK and
Europe Chief Risk Officer and senior actuaries, in particular the
With Profits Actuary and the UK and Europe Actuarial Director,
routinely attend these meetings.
SLAL has had a WPC since demutualisation. Its role is to monitor
and advise the SLAL board on the management of with profits
business, providing independent judgement on the fair treatment of
with profits policyholders, and to take a proactive role in raising
any issues that merit further consideration. The committee reviews
all proposals that are material to the interests of SLAL's with
profits policyholders. The committee has the authority to engage
external advisers and has engaged Nick Dumbreck, an actuary from
Milliman LLP, to routinely provide the members with advice. The
Chairman has a right of access at all times to the Chairman of the
Risk and Capital Committee but saw no requirement during the year
to exercise this right.
The committee's routine formal interaction with the SLAL board
is by the submission of the minutes of its meetings to the board,
together with the provision of feedback on its advice, and by an
annual report to the SLAL board in which it reviews the management
of with profits business having regard to SLAL's duty to treat its
with profits policyholders fairly and to meet their reasonable
benefit expectations. The committee has authority to make a report
to the with profits policyholders. It did not do so during 2016 and
would not expect to do so unless it disagreed materially with
SLAL's own annual report to its with profits policyholders (which
is required by FCA regulations) on the management of the with
profits business. Minutes of the committee meetings are also
submitted to the Board of Standard Life plc and, in May 2016, the
committee Chairman attended a meeting of the Standard Life plc
Board which focused on three key with profits issues - investment
strategy, the implementation of the new Solvency II insurance
regulation regime and the terms on which the main with profits fund
secures guaranteed annuities for customers.
The committee's work in 2016
An indicative breakdown as to how the committee spent its time
is shown below: Diagram removed for the purposes of this
announcement. However it can be viewed in full in the pdf
document.
During 2016, the committee's work focused on these key
areas:
Customer
Policy values - the WPC reviewed the algorithm for setting
regular bonus rates and confirmed that it remains appropriate. It
approved management's recommendations regarding bonus rates and
payout values.
Service - the WPC regularly reviews with profits customer
complaints data and has been pleased to note the continuation of an
improving trend. The WPC visited the Customer Hub to understand how
pensions freedoms are applied to the customer experience from a
digital and telephony perspective. Following SLAL's decision to
close the German With Profits Fund to new business in 2015 and
subsequent restructuring to improve efficiency, the WPC has had
detailed briefings on the management of the with profits business
there, and in 2016, held one of its meetings in the branch office
in Germany. The committee has noted that the reduction in numbers
of complaints has been especially pronounced in Germany.
Balance of interests
A fundamental responsibility of the WPC is to ensure that with
profits customers' interests are protected, with appropriate
balance between different cohorts of customers, and that
shareholder interests do not compromise this protection.
The WPC approved the transfers to shareholder funds, in
accordance with the Scheme of Demutualisation, for the year ended
31 December 2015 of some GBP190m.
The WPC also reviewed the With Profits Actuary's advice on
expense allocation within SLAL and agreed with his conclusion that
the methodology had no material bias against policyholders'
interests. Occasionally there are administrative errors that give
rise to extra costs and particular care is taken to ensure that the
with profits funds do not bear any inappropriate burden from
these.
The WPC approved SLAL's proposal that no changes were required
to the rates of deduction from with profits policies in respect of
the cost of guarantees.
Annuity Rates for Guaranteed Annuity Option/Guaranteed Minimum
Pension Buyouts
Following the committee's review and challenge of the rates
charged by SLAL to the Heritage With Profits Fund (HWPF) for buying
out guaranteed annuity liabilities, SLAL is now offering a
discounted rate to the HWPF on the basis that SLAL is not in a
position to offer the HWPF the benefit of the open market option
that is available to individual customers without taking on
additional risk. The committee is satisfied that the arrangement
will help to protect the interests of the fund, but will continue
to monitor the fairness of this arrangement.
Capital and risk management
During the year the WPC approved a number of proposals to manage
the finances of the with profits funds and to control risks
appropriately. These included revision of the scenarios for testing
investment risk, adjusting Equity Backing Ratios and other
allocations of the assets directly backing with profits policies,
reviewing the effectiveness of hedging strategies, and setting
distribution rates for the Inherited Estate The HWPF was set up at
demutualisation with surplus referred to as an Inherited Estate.
Its primary role is to provide a cushion against the possibility
that the assets set aside to cover the liabilities of the HWPF
prove insufficient and to meet any unforeseen liabilities.
Regulatory and governance
Principles and Practices of Financial Management (PPFM)
The WPC sought and obtained assurance that the with profits
businesses in the UK have been managed in accordance with the
published PPFM.
Solvency II
The introduction of Solvency II on 1 January 2016 has
necessitated a number of technical changes to the Scheme of
Demutualisation, to ensure that it continues to operate as
intended, all of which were reviewed by the WPC. Some required
Court approval, and this was obtained during 2016.
Investments
The WPC receives quarterly presentations from Standard Life
Investments on the performance of the with profits funds. The
committee noted recent slippage in the performance of some asset
classes and challenged their performance. The committee also
advised SLAL on the actions that are being taken to reverse this
and maintain strong long-term performance.
Conclusion
Looking back on 2016, the WPC concluded that:
-- The management of SLAL's with profits business has paid due
regard to its duty to treat its with profits policyholders fairly
and to meet their reasonable benefit expectations
-- The UK Smoothed Managed With Profits Fund and the HWPF PPFMs have been complied with
-- It had continued to challenge management on the exercise of discretion
The committee provides information on its members, composition
and how the committee protects the interests of policyholders and
makes its views known at the following website
www.standardlife.co.uk/c1/funds/with-profits-committee.page
12.2 Report from the Independent Governance Committee of
Standard Life Assurance Limited
During 2016, the Independent Governance Committee (IGC)
published their first annual report. The IGC acts solely in the
interests of scheme members by providing credible and effective
challenge on the value for money of workplace personal pension
schemes.
Rene Poisson
Chairman, Independent Governance Committee of Standard Life
Assurance Limited
In their first report, the IGC concluded that Standard Life does
provide value for money for workplace schemes.
By way of reminder, Independent governance committees have been
established as a response to:
-- The market review undertaken in 2013 by the Office of Fair
Trading which identified that competition was not having the
expected impact in improving value for policyholders in workplace
pension schemes and that change was required to ensure that they
received Value for Money
-- The results of a subsequent 2014 report (the legacy audit) by
the Independent Project Board (IPB) of the Association of British
Insurers which looked at legacy pension schemes at risk of being
exposed to charges over an equivalent of one per cent annual
management charge
Membership
The members are appointed by the SLAL board on the
recommendation of the Nomination and Governance Committee. The
membership of the IGC remains unchanged since inception.
The IGC intends to meet as often as necessary to fulfil its
obligations. During 2016, as the IGC fulfilled the commitments they
outlined in their first report, the committee has met 12 times.
Member attendance at meetings for the year ending 31 December
2016 was:
IGC Member Attendance
------------------------------- ----------
Rene Poisson, Chairman 12/12
Richard Butcher 11/12
Ingrid Kirby 12/12
Roger Mattingly 12/12
Michael Craig (non-independent
member) 12/12
------------------------------- ----------
The Head of Pensions Strategy routinely attends these meetings
and the Managing Director for Corporate, Retail and Wholesale has
had regular interactions with the committee. The committee's
routine formal interaction with the SLAL board is by the minutes of
its meetings. The directors of SLAL and of the Company have an open
invitation to attend any of the committee meetings. Minutes of the
committee meetings are submitted to the Board. In May 2016, the
committee chairman attended a meeting of the Standard Life plc
Board to present the findings from the IGC's first report.
The Chairman is responsible for the production of an annual
report, the first of which was published on 29 March 2016. The
report and information on the committee's composition can be found
at the following website www.standardlife.co.uk/igc
The committee's work in 2016
An indicative breakdown as to how the committee spent its time
is shown below: Diagram removed for the purposes of this
announcement. However it can be viewed in full in the pdf
document.
Legacy audit
The IGC has focused on the implementation of the changes agreed
under the legacy audit which were successfully implemented on 31
October 2016 as per the deadline agreed between the IGC and
SLAL.
Value for money
In its first annual report the IGC concluded overall that
Standard Life's various workplace personal pension products (both
newer and older style) offer policyholders value for money; are of
good quality; benefit from well-designed investment solutions, good
administration and governance; and, comprehensive member support
and communication materials. However, it noted that to achieve a
suitable level of income in retirement, adequate contributions are
required through the lifetime of pension saving.
Looking ahead to 2017
The IGC is looking more closely at the value for money offered
by the wider range of investment options as well as default
arrangements that have been designed by employer sponsors and/or
scheme advisers. It has commissioned some independent analysis to
help with this work.
The IGC recognises the importance of gathering the views of
scheme members as customers and has continued to attend retirement
roadshows. One of Standard Life's commitments to the IGC referenced
in the 2016 report was to commission member research. Standard
Life, along with ten other providers, sponsored and participated in
independent research co-ordinated by Sacker & Partners LLP.
This approach allowed insight to be gathered from scheme members to
build an understanding of what they value and why. The results of
this will be shown in the second annual report due to be published
in March 2017.
The annual report can be found at the following website
www.standardlife.co.uk/igc
12.3 Report from the Standard Life Master Trust Co. Ltd
During 2015, Standard Life Master Trust Co. Ltd (SLMTC) was
established as a subsidiary of SLAL. Its role is to act as trustee
and to work in the interests of members of the Standard Life
Defined Contribution Master Trust and Stanplan A pension schemes,
both of which are trust based schemes designed for multiple
employers.
Similar to the IGC, SLMTC has a duty to assess whether members
of these schemes are receiving good value. Alongside their trustee
duties they are following a similar programme to the IGC to carry
out this assessment.
Richard Butcher
Chairman, Standard Life Master Trust Co. Ltd
Membership
The board of SLMTC consists of five members, all of whom are
independent of Standard Life. They meet regularly throughout the
year. Pitmans Trustees Limited was appointed as chair of the board
of directors of the SLMTC. Richard Butcher is their
representative.
The membership of the board remains unchanged since
inception.
The SLMTC board intends to meet at least four times a year and
as often as necessary to fulfil its obligations. During its second
year the board of SLMTC has met six times.
Member attendance at meetings for the year ending 31 December
2016 was:
Member Attendance
----------------- ----------
Richard Butcher,
Chairman 6/6
Rene Poisson 6/6
Stella Girvin 6/6
Ruston Smith 6/6
Francois Barker 6/6
----------------- ----------
The Head of Pensions Strategy routinely attends these meetings
and the Managing Director for Corporate, Retail and Wholesale has
had regular interactions with the board.
The board's work in 2016
An indicative breakdown as to how the board spent its time is
shown below: Diagram removed for the purposes of this announcement.
However it can be viewed in full in the pdf document.
Legacy audit
Alongside the IGC, the SLMTC has focused on the implementation
of the changes agreed under the legacy audit which were
successfully implemented on 31 October 2016 as per the deadline
agreed between the SLMTC board and SLAL.
Good value
In the first chairman's statement published in July 2016, it was
concluded that Standard Life's Defined Contribution and Stanplan A
Master Trusts offer good value.
Audit and assurance framework
In 2016, the board of SLMTC adopted the framework provided by
the Audit and Assurance faculty of the Institute of Chartered
Accountants in England and Wales entitled Assurance Reporting on
Master Trusts (Master Trust Supplement to ICAEW AAF 02/07). This
report provides information and assurance on the design and
description of governance and administrative control procedures in
relation to the business operations of SLMTC for providing pensions
trustee services.
Looking ahead to 2017
A key focus for the board is the impact of the Pension Schemes
Bill and the changes to come in the months ahead.
More information on the composition of SLMTC can be found at the
following website
www.standardlife.co.uk/c1/master-trust-committee.page
13. Glossary
Annuity
A periodic payment made for an agreed period of time (usually up
to the death of the recipient) in return for a cash sum. The cash
sum can be paid as one amount or as a series of premiums. If the
annuity commences immediately after the payment of the sum, it is
called an immediate annuity. If it commences at some future date,
it is called a deferred annuity.
Articles
The Articles of Association detail the provisions relating to
the regulation of a company in terms of the rights of its members
and the authority of its directors.
Assets under administration (AUA)
AUA is a measure of the total assets we administer. It includes
Standard Life Investments assets under management (AUM), as well as
those assets that the Group administers where the customer has made
a choice to select an external third party investment manager.
AUA represents the IFRS gross assets of the Group, adjusted to
include third party AUA which is not included on the consolidated
statement of financial position, and excluding certain assets which
do not constitute AUA. The assets excluded are primarily
reinsurance assets, deferred acquisition costs and intangible
assets.
Assets under management (AUM)
A measure of the total assets that Standard Life Investments
manages on behalf of individual customers and institutional
clients, for which it receives a fee.
Auto enrolment
The UK Government introduced auto enrolment to help people save
for their retirement. Employers have to automatically enrol
eligible employees into a qualifying workplace pension scheme
(QWPS). This pension scheme needs to meet the standards set by the
Pensions Regulator.
Board
The Board of Directors of the Company.
Capital management
Capital management is a component of operating profit and
relates to the return from the net assets of the shareholder
business, net of costs of financing. This includes the net assets
in defined benefit staff pension plans and net assets relating to
the financing of subordinated liabilities. The measure excludes
short-term fluctuations in investment return.
Capital surplus
This is a regulatory measure of our financial strength. From 1
January 2016 our capital surplus is measured on a Solvency II
basis. Prior to
1 January 2016, our capital surplus was measured in accordance
with the Insurance Groups Directive.
Chief Operating Decision Maker
The strategic executive committee.
Company
Standard Life plc.
Cost/income ratio
This is an efficiency measure that is calculated as operating
expenses divided by operating income on a rolling 12 month basis,
and includes the share of associates' and joint ventures' profit
before tax.
Deferred acquisition costs (DAC)
The method of accounting whereby acquisition costs on long-term
business are deferred on the consolidated statement of financial
position as an asset and amortised over the life of those
contracts. This leads to a smoothed recognition of up front
expenses instead of the full cost in the year of sale.
Deferred income reserve (DIR)
The method of accounting whereby front end fees that relate to
services to be provided in future periods are deferred on the
consolidated statement of financial position as a liability and
amortised over the life of those contracts. This leads to a
smoothed recognition of up front income instead of the full income
in the year of sale.
Director
A director of the Company.
Discounting
The reduction to present value at a given date of a future cash
transaction at an assumed rate, using a discount factor reflecting
the time value of money. The choice of a discount rate will usually
greatly influence the value of insurance provisions, and may give
indications on the conservatism of provisioning methods.
Drawdown (flexible income)
Drawdown, also known as flexible income, allows the policyholder
to withdraw pension income as and when they request it. The
remainder of the pension fund remains invested, giving it the
potential for growth.
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
EBITDA is defined as earnings before interest, taxation,
depreciation, amortisation, restructuring costs, other
non-operating items and
non-controlling interests.
Earnings per share (EPS)
EPS is a commonly used financial metric which can be used to
measure the profitability and strength of a company over time. EPS
is calculated by dividing profit by the number of ordinary shares.
Basic EPS uses the weighted average number of ordinary shares
outstanding during the year. Diluted EPS adjusts the weighted
average number of ordinary shares outstanding to assume conversion
of all dilutive potential ordinary shares, such as share options
awarded to employees.
EBITDA margin
This is an industry measure of performance for investment
management companies. It is calculated as EBITDA divided by fee
based revenue.
Effective tax rate
Tax expense/(credit) attributable to equity holders' profit
divided by profit before tax attributable to equity holders'
profits expressed as a percentage.
Fair value through profit or loss (FVTPL)
FVTPL is an IFRS measurement basis permitted for assets and
liabilities which meet certain criteria. Gains or losses on assets
or liabilities measured at FVTPL are recognised directly in the
income statement.
Fee based business/revenue
Fee based business is a component of operating profit and is
made up of products where we generate revenue primarily from asset
management charges (AMCs), premium based charges and transactional
charges. AMCs are earned on products such as SIPP, corporate
pensions and mutual funds, and are calculated as a percentage fee
based on the assets held. Investment risk on these products rests
principally with the customer, with our major indirect exposure to
rising or falling markets coming from higher or lower AMCs.
Fee revenue yield (bps)
The average revenue yield on fee based business is a measure
that illustrates the average margin being earned on the assets that
we administer. It is calculated as a rolling 12 month fee based
revenue divided by a rolling 12 month monthly average AUA.
Global absolute return strategies (GARS)
A discretionary multi-asset fund provided under several
regulated pooled and segregated structures globally by Standard
Life Investments. The investment objective is to target a level of
return over a rolling 3 year period equivalent to cash plus 5% a
year (gross of fees), and to do so with as little risk as
possible.
Group, Standard Life Group or Standard Life
Prior to demutualisation on 10 July 2006, SLAC and its
subsidiaries and, from demutualisation on 10 July 2006, the Company
and its subsidiaries.
Growth channels
We aim to drive the increase in our assets, revenue and profit
via our growth channels. This comprises Standard Life Investments
Institutional and Wholesale, UK Workplace and Retail, Europe
(excluding Germany with profits), Hong Kong, Standard Life Wealth
and Ignis.
Heritage With Profits Fund (HWPF)
The Heritage With Profits Fund contains all business - both with
profits and non-profit - written before demutualisation in the UK,
Irish or German branches, with the exception of the classes of
business which the Scheme of Demutualisation allocated to funds
outside the HWPF. The HWPF also contains increments to this
business.
International Financial Reporting Standards (IFRS)
International Financial Reporting Standards are accounting
standards issued by the International Accounting Standards Board
(IASB). The Group's consolidated financial statements are prepared
in accordance with IFRS as endorsed by the EU.
Investor view
The investor view of Solvency II adjusts the regulatory position
for the impact from unrecognised capital and with profit funds /
defined benefit pension plans.
Key performance indicators (KPI)
A measure by reference to which the development, performance or
position of the business can be measured effectively.
Liability aware
Liability aware is a framework for proactively managing the
various liability risks and requirements that are faced by defined
benefit pension plans and insurance companies.
Mature book/business
Mature books are expected to provide a stable and consistent
contribution to our profit. This includes UK mature Retail,
Standard Life Investments Strategic Partner Life books and
spread/risk based business. It also includes the with profits
business in Germany which closed to new business in April 2015.
Net flows
Net flows represent gross inflows less gross outflows or
redemptions. Gross inflows are new funds from clients and
customers. Gross outflows or redemptions is the money withdrawn by
clients or customers during the period, including annuity
payments.
Operating expenses
Operating expenses is a component of operating profit and
relates to the day-to-day expenses of managing our business.
Operating income
Operating income is a component of operating profit and consists
of fee based revenue and spread/risk margin.
Operating profit
Operating profit is the Group's key alternative performance
measure. Operating profit excludes impacts arising from short-term
fluctuations in investment return and economic assumption changes.
It is calculated based on expected returns on investments backing
equity holder funds, with consistent allowance for the
corresponding expected movements in equity holder liabilities.
Impacts arising from the difference between the expected return and
actual return on investments, and the corresponding impact on
equity holder liabilities except where they are directly related to
a significant management action, are excluded from operating profit
and are presented within profit before tax. The impact of certain
changes in economic assumptions is also excluded from operating
profit and is presented within profit before tax.
Operating profit also excludes the impact of the following
items:
-- Restructuring costs and corporate transaction expenses.
Restructuring includes the impact of major regulatory change.
-- Impairment of intangible assets acquired in business
combinations
-- Profit or loss arising on the disposal of a subsidiary, joint
venture or associate
-- Amortisation of intangibles acquired in business combinations
and fair value movements in contingent consideration
-- Items which are one-off in nature and which, due to their
size or nature, are not indicative of the long-term operating
performance of the business
Operating return on equity (RoE)
The annualised post-tax operating profit expressed as a
percentage of the opening IFRS equity, adjusted for time
apportioned dividends paid to equity holders.
Own funds
Under Solvency II, the capital resources available to meet
solvency capital requirements are called own funds.
Platform
An investment platform (eg Wrap or Elevate) which is essentially
a trading platform enabling investment funds, pensions, direct
equity holdings and some life assurance contracts to be held in the
same administrative account rather than as separate holdings.
Recourse cash flows (RCF)
Certain cash flows arising in the Heritage With Profits Fund
(HWPF) on specified blocks of UK and Ireland business, which are
transferred out of the fund annually and accrue to the ultimate
benefit of equity holders, as determined by the Scheme of
Demutualisation.
Regular premium
A regular premium contract (as opposed to a single premium
contract), is one where the policyholder agrees at inception to
make regular payments throughout the term of the contract.
Scheme of Demutualisation or the Scheme
The scheme pursuant to Part VII of, and Schedule 12 to, the
Financial Services and Markets Act 2000, under which substantially
all of the long-term business of SLAC was transferred to Standard
Life Assurance Limited on 10 July 2006.
SICAV
A SICAV (société d'investissement à capital variable) is an
open-ended collective investment scheme common in Western Europe.
SICAVs can be cross-border marketed in the EU under the
Undertakings for Collective Investment in Transferable Securities
(UCITS) directive.
Single premium
A single premium contract (as opposed to a regular premium
contract), which involves the payment of one premium at inception
with no obligation for the policyholder to make subsequent
additional payments.
SIPP
A self invested personal pension which provides the policyholder
with greater choice and flexibility as to the range of investments
made, how those investments are managed, the administration of
those assets and how retirement benefits are taken.
SLAC
The Standard Life Assurance Company (renamed The Standard Life
Assurance Company 2006 on 10 July 2006).
SLAL
Standard Life Assurance Limited.
Solvency II
Solvency II is an EU-wide initiative that brings consistency to
how EU insurers manage capital and risk. Solvency II was
implemented on
1 January 2016.
Solvency capital requirement (SCR)
Under Solvency II, insurers are required to identify their key
risks - for example that equity markets fall - and hold sufficient
capital to withstand adverse outcomes from those risks. This amount
of capital is referred to as the Solvency capital requirement or
SCR.
Spread/risk business
Spread/risk business mainly comprises products where we provide
a guaranteed level of income for our customers in return for an
investment, for example, annuities. The 'spread' referred to in the
title primarily relates to the difference between the guaranteed
amount we pay to customers and the actual return on the assets over
the period of the contract.
Spread/risk margin
Spread/risk margin is a component of operating profit and
reflects the margin earned on spread/risk business. This includes
net earned premiums, claims and benefits paid, net investment
return using long-term assumptions and reserving changes.
Spread/risk margin excludes the impact of economic assumption
changes, which are not included in determining operating
profit.
Standard Life Investments Institutional
Standard Life Investments Institutional sell to institutions
(including corporates, pension schemes, local authorities,
government agencies and insurance companies) either directly or
through intermediaries.
Standard Life Investments Wholesale
Standard Life Investments Wholesale sell retail products through
wholesale distributors including third party fund supermarkets,
global financial institutions and private banks.
Strategic executive committee
Responsible for the day-to-day running of the business and
comprises; Chief Executive, Chief Executive - Life Insurance, Chief
Executive - Pensions and Savings, Chief Financial Officer, Chief
Investment Officer, Chief Operating Officer, Chief People Officer,
Chief Risk Officer, General Counsel and the Global Client
Director.
Strategic partner life business
A measure of the assets that Standard Life Investments manages
on behalf of Standard Life Group companies and under other
long-term life book partnership agreements with third party
companies such as Phoenix Group.
Subordinated liabilities
Subordinated liabilities are debts of a company which, in the
event of liquidation, rank below its other debts but above share
capital.
Technical provisions
The best estimate market consistent value of our policyholder
liabilities is referred to as technical provisions. The calculation
is discounted to recognise the time value of money and includes a
risk margin, calculated in accordance with Solvency II
regulations.
Third party (excluding strategic partner life business)
A measure of the assets that Standard Life Investments manages
on behalf of individual customers and institutional clients, for
which it receives a fee. This measure excludes the assets that are
managed on behalf of strategic partners in life assurance
books.
Transitional relief
Solvency II regulations allow insurers to smooth the
introduction of new rules for calculating policyholder liabilities.
This relief includes a deduction from the amount of Solvency II
technical provisions, based on the difference between technical
provisions under the previous regulatory framework and Solvency II.
The deduction decreases over the course of 16 years from 1 January
2016.
UK Retail
This relates to business where we have a relationship with the
customer either directly or through an independent financial
adviser. We analyse this type of business into growth and mature
categories. Retail growth includes the products, platforms,
investment solutions and services of our UK Retail business that we
continue to market actively to our customers. Retail mature
includes business that was predominantly written before
demutualisation.
UK Workplace
UK Workplace pensions, savings and benefits to UK employers and
employees. These are sold through corporate benefit consultants,
independent financial advisers, or directly to employers.
Underlying cash generation
This presents a shareholder view of underlying cash earnings.
The IFRS consolidated statement of cash flows includes policyholder
cashflows, and does not exclude underlying adjustments and
non-operating items.
Underlying cash generation adjusts underlying performance for
certain non-cash items. Adjustments are made for deferred
acquisition costs/deferred income reserve, fixed/intangible assets
and the Asian joint ventures and associates.
Depreciation/amortisation that would normally be included in
operating profit is replaced with the cash movement in the period.
The measure is stated net of current (cash) tax on underlying
performance. A reconciliation of underlying performance to
underlying cash generation is included in the Strategic report.
Reconciliations between underlying performance, operating profit
and profitability on an IFRS basis are also included in this
report.
Underlying performance
Underlying performance is operating profit before tax after
excluding the impact of spread/risk operating actuarial assumption
changes and specific management actions in the reporting
period.
Unit linked policy
A policy where the benefits are determined by reference to the
investment performance of a specified pool of assets referred to as
the unit linked fund.
14. Shareholder information
Registered office
Standard Life House
30 Lothian Road
Edinburgh
EH1 2DH
Scotland
Company registration number: SC286832
Phone: 0345 850 9071* or 0131 225 2552*
For shareholder services call:
0345 113 0045*
* Calls may be monitored and/or recorded to protect both you and
us and help with our training. Call charges will vary.
Secretary
Kenneth A Gilmour
Registrar
Capita Registrars Limited
Auditors
PricewaterhouseCoopers LLP
Solicitors
Slaughter and May
Brokers
JP Morgan Cazenove
Goldman Sachs
Shareholder services
We offer a wide range of shareholder services. For more
information, please:
-- Contact our registrar, Capita, on 0345 113 0045* if calling
from the UK. International numbers can be found on the next
page.
-- Visit our share portal at www.standardlifeshareportal.com
Sign up for Ecommunications
Signing up means:
-- You'll receive an email when documents like the Annual report
and accounts, Half year results and AGM guide are available on our
website
-- Voting instructions for the Annual General Meeting will be sent to you electronically
Set up a share portal account
Having a share portal account means you can:
-- Manage your account at a time that suits you
-- Download your documents when you need them
To find out how to sign up, visit
www.standardlifeshareportal.com
Preventing unsolicited mail
By law, the Company has to make certain details from its share
register publicly available. Because of this, it is possible that
some registered shareholders could receive unsolicited mail or
phone calls. You could also be targeted by fraudulent 'investment
specialists'. Remember, if it sounds too good to be true, it
probably is.
You can find more information about share scams at the Financial
Conduct Authority website www.fca.org.uk/consumers/scams
If you are a certificated shareholder, your name and address may
appear on a public register. Using a nominee company to hold your
shares can help protect your privacy. You can transfer your shares
into the Company-sponsored nominee - the Standard Life Share
Account - by contacting Capita, or you could get in touch with your
broker to find out about their nominee services.
If you want to limit the amount of unsolicited mail you receive
generally, please visit www.mpsonline.org.uk
2017 Financial calendar
Full year results 2016 24 February
----------------------------------- ------------
Ex-dividend date for 2016 final 13 April
dividend
----------------------------------- ------------
Record date for 2016 final dividend 18 April
----------------------------------- ------------
Last date for DRIP elections 03 May
for 2016 final dividend
----------------------------------- ------------
Annual General Meeting 16 May
----------------------------------- ------------
Dividend payment date for 2016 23 May
final dividend
----------------------------------- ------------
Half year results 2017 08 August
----------------------------------- ------------
Ex-dividend date for 2017 interim 07 September
dividend
----------------------------------- ------------
Record date for 2017 interim 08 September
dividend
----------------------------------- ------------
Last date for DRIP elections 27 September
for 2017
interim dividend
----------------------------------- ------------
Dividend payment date for 2017 18 October
interim dividend
----------------------------------- ------------
Analysis of registered shareholdings at 31 December 2016
Number % of % of
Range of total Number total
of shares holders holders of shares shares
-------------- -------- -------- ------------- -------
1-1,000 63,383 61.57 27,054,291 1.37
1,001-5,000 34,672 33.68 70,479,180 3.56
5,001-10,000 2,898 2.82 19,440,771 0.98
10,001-100,000 1,528 1.48 35,141,061 1.78
(#) 100,001+ 461 0.45 1,826,769,134 92.31
-------------- -------- -------- ------------- -------
Total 102,942 100 1,978,884,437 100
-------------- -------- -------- ------------- -------
# These figures include the Company-sponsored nominee - the
Standard Life Share Account - which had 1,060,964 participants
holding 746,304,323 shares.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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February 24, 2017 02:02 ET (07:02 GMT)
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