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09/03

Profits up 16% at Skandia International to £78 million

Skandia International, part of Old Mutual Wealth Management, saw IFRS Adjusted Operating Profit increase by 16% to £78 million during 2011 (2010: £67 million) driven largely by delivering its planned product mix, with increased focus on higher-margin portfolio bond products, and lower costs.

9 March 2012

Skandia International, part of Old Mutual Wealth Management, saw IFRS Adjusted Operating Profit increase by 16% to £78 million during 2011 (2010: £67 million) driven largely by delivering its planned product mix, with increased focus on higher-margin portfolio bond products, and lower costs.

Net client cash flows remained positive at £0.5 billion (2010: £0.6 billion) with gross sales decreasing slightly to £2.7 billion (2010: £2.9 billion) amid challenging market conditions for single premiums. Funds under management stood at £16.1 billion as at 31 December 2011 (£16.8 billion as at 31 December 2010).

Europe, UK and the Middle East were the top three regions by sales volume (on an APE basis) although Asia, Latin America and South Africa continue to feature heavily and represent strong growth opportunities for Skandia International.

New product developments from Skandia International during 2011 focused on wealth management, a Discounted Gift Trust and a portfolio builder tool with two new global managed funds as well as a continued focus on providing strong investment solutions for the QROPS market. Skandia International is today announcing that it is to transform its offshore proposition by introducing a new, end-to-end wealth management service during the course of 2012.

Steven LevinSteven Levin, chief executive at Skandia International, comments:

“2011 saw challenging market conditions so it is very encouraging to report robust sales and improving profit. We have a well diversified geographic footprint which gives us access to both established and growing economies. Retail investors remain cautious around the world but with conditions and sentiment improving this year we are well positioned to meet their needs. We continued to evolve our proposition during 2011 and this year we will roll-out a significant step change in the way we do business with financial advisers and customers.”

This press release is for journalists only and should not be relied upon by financial advisers or customers.

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