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05/08

Skandia International announces positive first half results

Skandia International, the offshore business of Old Mutual, today announces positive Net Client Cash Flow (net sales) of £0.3 billion for the first six months of 2011. With global markets remaining broadly flat over the period this positive net client cash flow meant funds under management as at 30 June 2011 stood at £17 billion. IFRS adjusted operating profit increased by 56% to £42 million for the first half of 2011 (£27 million in H1 2010).

5 August 2011

Skandia International, the offshore business of Old Mutual, today announces positive Net Client Cash Flow (net sales) of £0.3 billion for the first six months of 2011. With global markets remaining broadly flat over the period this positive net client cash flow meant funds under management as at 30 June 2011 stood at £17 billion. IFRS adjusted operating profit increased by 56% to £42 million for the first half of 2011 (£27 million in H1 2010).

Sales trends saw a move away from regular premium business towards single premium portfolio bonds. Europe (excluding UK) was the biggest selling region for Skandia International over the period, followed by the UK and Middle East. Sales continue to grow significantly in Hong Kong and Singapore, with more development to come there. Latin America and South Africa also remain significant markets and an ongoing focus for Skandia International.

During the first half of the year Skandia International continued to launch innovative new propositions as well as winning three major industry awards. The launch of a new online Portfolio Builder tool can help financial advisers identify their clients’ attitude to risk and build an investment portfolio that directly matches that risk level. At the same time, Skandia International launched two new funds to complete its range of five managed investment solutions that match the five investment profiles identified by the new Portfolio Builder.

At the 2011 Professional Adviser International Fund and Product awards Skandia International was named Best International Life Group as well as winning awards for Best International Life Product and Best International Sales Team.

Michelle AndrewsMichelle Andrews, commercial director at Skandia International, comments:

“We have seen increasing demand for our Royal Skandia and Skandia Life Ireland offshore bonds as investors seek to take advantage of their inbuilt flexibility. The recent addition of a simple-to-use investment portfolio builder tool has seen registrations to our Adviser Extranet increase by 20% in May and June and this has had the desired effect on sales which remain strong across all regions. It is particularly pleasing to see sales in Singapore, our newest market, make a strong and much improved contribution in H1.”

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