Standard Life Investment Funds Limited

Transcription

1 Standard Life Investment Funds Limited Annual FSA Insurance Returns for the financial year ended 31 December 2011 Prepared in accordance with the Accounts and Statements Rules (Appendices 9.3, and 9.6)

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3 Balance Sheet and Profit and Loss Account Contents Long Term Insurance Business: Revenue Account and Additional Information Form 40 Revenue account 1 Form 41 Analysis of premiums 3 Form 42 Analysis of claims 4 Form 43 Analysis of expenses 5 Form 45 Revenue account for internal linked funds 6 Form 46 Summary of new business 7 Form 47 Analysis of new business 8 Supplementary notes to the return 14 Directors' Certificate 18 Auditor's Report 19

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5 Long-term insurance business : Revenue account Form 40 Total business / subfund Ordinary Long Term Units 000 Financial year Previous year 1 2 Income Earned premiums Investment income receivable before deduction of tax Increase (decrease) in the value of non-linked assets brought into account Increase (decrease) in the value of linked assets ( ) Other income Total income Expenditure Claims incurred Expenses payable Interest payable before the deduction of tax Taxation Other expenditure Transfer to (from) non technical account 26 (90616) Total expenditure Business transfers - in 31 Business transfers - out Increase (decrease) in fund in financial year ( ) 39 ( ) Fund brought forward Fund carried forward (39+49)

6 Form 40 Covering Sheet to Form 40 Global business P S Matthews Chief Executive J Gill Director M Hesketh Director 2

7 Long-term insurance business : Analysis of premiums Form 41 Total business / subfund Ordinary Long Term Units 000 UK Life UK Pension Overseas Total Financial year Total Previous year Gross Regular premiums Single premiums Reinsurance - external Regular premiums 13 Single premiums Reinsurance - intra-group Regular premiums 15 Single premiums 16 Net of reinsurance Regular premiums Single premiums Total Gross Reinsurance Net

8 Long-term insurance business : Analysis of claims Form 42 Total business / subfund Ordinary Long Term Units 000 Gross UK Life UK Pension Overseas Total Financial year Total Previous year Death or disability lump sums Disability periodic payments Surrender or partial surrender Annuity payments Lump sums on maturity Total Reinsurance - external Death or disability lump sums 21 Disability periodic payments 22 Surrender or partial surrender Annuity payments 24 Lump sums on maturity 25 Total Reinsurance - intra-group Death or disability lump sums 31 Disability periodic payments 32 Surrender or partial surrender 33 Annuity payments 34 Lump sums on maturity 35 Total 36 Net of reinsurance Death or disability lump sums Disability periodic payments Surrender or partial surrender Annuity payments Lump sums on maturity Total

9 Long-term insurance business : Analysis of expenses Form 43 Total business / subfund Ordinary Long Term Units 000 Gross UK Life UK Pension Overseas Total Financial year Total Previous year Commission - acquisition Commission - other Management - acquisition Management - maintenance Management - other Total Reinsurance - external Commission - acquisition 21 Commission - other 22 Management - acquisition 23 Management - maintenance 24 Management - other 25 Total 26 Reinsurance - intra-group Commission - acquisition 31 Commission - other 32 Management - acquisition 33 Management - maintenance 34 Management - other 35 Total 36 Net of reinsurance Commission - acquisition Commission - other Management - acquisition Management - maintenance Management - other Total

10 Long-term insurance business : Revenue account for internal linked funds Form 45 Total business Units 000 Financial year Previous year 1 2 Income Value of total creation of units Investment income attributable to the funds before deduction of tax Increase (decrease) in the value of investments in the financial year Other income ( ) Total income Expenditure Value of total cancellation of units Charges for management Charges in respect of tax on investment income Taxation on realised capital gains Increase (decrease) in amount set aside for tax on capital gains not yet realised Other expenditure (11469) (46118) Total expenditure Increase (decrease) in funds in financial year (19-29) Internal linked fund brought forward Internal linked funds carried forward (39+49) 39 ( )

11 Long-term insurance business : Summary of new business Form 46 Total business Units 000 Number of new policyholders/ scheme members for direct insurance business Regular premium business 11 UK Life UK Pension Overseas Total Financial year Total Previous year Single premium business 12 Total 13 Amount of new regular premiums Direct insurance business 21 External reinsurance 22 Intra-group reinsurance Total Amount of new single premiums Direct insurance business 25 External reinsurance Intra-group reinsurance Total

12 Long-term insurance business : Analysis of new business Form 47 Total business Units 000 UK Life / Reinsurance accepted intra-group Product code number Product description Regular premium business Number of policyholders / scheme members Amount of premiums Single premium business Number of policyholders / scheme members Amount of premiums Annuity non-profit (PLA) Annuity non-profit (CPA) Life property linked single premium - Capital Investment Bond Life property linked single premium - Special Investment Bond Life property linked single premium - Tailored Investment Bond Life property linked single premium - Wrap Onshore Bond Life property linked whole life regular premium - Variable Protection Plan Life property linked endowment regular premium - savings - Versatile Investment Plan 1

13 Long-term insurance business : Analysis of new business Form 47 Total business Units 000 UK Pension / Reinsurance accepted external Product code number Product description Regular premium business Number of policyholders / scheme members Amount of premiums Single premium business Number of policyholders / scheme members Amount of premiums Trustee investment plan

14 Long-term insurance business : Analysis of new business (Sheet 1) Form 47 Total business Units 000 UK Pension / Reinsurance accepted intra-group Product code number Product description Regular premium business Number of policyholders / scheme members Amount of premiums Single premium business Number of policyholders / scheme members Amount of premiums Annuity non-profit (CPA) Annuity non-profit (CPA) - Group Annuity in Payment Individual pensions property linked - Active Money Personal Pension Individual pensions property linked - Personal Pension Plan & Castle Pension Series Individual pensions property linked - Stakeholder Individual pensions property linked - increments - Personal Pension Plan & Castle Pension Series Individual pensions property linked - increments - Stakeholder Group money purchase pensions property linked - Group Money Purchase Plan Group money purchase pensions property linked - Personal Pension Plan & Castle Pension Series Group money purchase pensions property linked - Stakeholder Group money purchase pensions property linked - Trust Based Pension Group money purchase pensions property linked - increments - Group Money Purchase Plan Group money purchase pensions property linked - increments - Personal Pension Plan & Castle Pension Series Group money purchase pensions property linked - increments - Stakeholder DWP National Insurance rebates property linked

15 Long-term insurance business : Analysis of new business (Sheet 2) Form 47 Total business Units 000 UK Pension / Reinsurance accepted intra-group Product code number Product description Regular premium business Number of policyholders / scheme members Amount of premiums Single premium business Number of policyholders / scheme members Amount of premiums Income drawdown property linked - Active Money SIPP Income drawdown property linked - Flexible Pension Plan Income drawdown property linked - Group Flexible Retirement Plan Income drawdown property linked - Group Self Invested Personal Pension Income drawdown property linked - Pension Fund Withdrawal Product Income drawdown property linked - Self Invested Personal Pension Income drawdown property linked - Wrap Self Invested Personal Pension Trustee investment plan Small self administered schemes Index linked annuity 5097

16 Long-term insurance business : Analysis of new business (Sheet 1) Form 47 Total business Units 000 Overseas (Irish Republic) / Reinsurance accepted intra-group Product code number Product description Regular premium business Number of policyholders / scheme members Amount of premiums Single premium business Number of policyholders / scheme members Amount of premiums Annuity non-profit (CPA) Annuity non-profit (CPA) - Group Annuity in Payment Life property linked single premium - Money Works Bond Life property linked single premium - Synergy Investment Bond Life property linked single premium - Synergy Portfolio Bond Life property linked whole life regular premium - Money Works Plan Individual pensions property linked - Personal & executive pension plans Individual pensions property linked - Synergy Buy Out Bond Individual pensions property linked - Synergy Executive Pension Plan Individual pensions property linked - Synergy Personal Pension Plan Individual pensions property linked - Synergy PRSA Individual pensions property linked - increments - Personal & Executive Pension Plan Individual pensions property linked - increments - PRSA Individual pensions property linked - increments - Synergy Buy Out Bond Individual pensions property linked - increments - Synergy Executive Pension Plan

17 Long-term insurance business : Analysis of new business (Sheet 2) Form 47 Total business Units 000 Overseas (Irish Republic) / Reinsurance accepted intra-group Product code number Product description Regular premium business Number of policyholders / scheme members Amount of premiums Single premium business Number of policyholders / scheme members Amount of premiums Individual pensions property linked - increments - Synergy Personal Pension Plan Group money purchase pensions property linked Group money purchase pensions property linked - increments Income drawdown property linked - Synergy Approved Retirement Funds Group managed fund

18 Returns under the Accounts and Statements Rules Supplementary notes STANDARD LIFE INVESTMENT FUNDS LIMITED *0204* Business Transfer With effect from 23:59 on 31 December 2011, the long term insurance business carried on by the company was transferred to Standard Life Assurance Limited for a nil consideration in accordance with the terms of a scheme under Part VII of the Financial Services and Markets Act 2000 approved by the Court of Session in Edinburgh on 20 December Details of the regulatory value of assets and liabilities transferred under the scheme are as follows: Assets transferred (Form 13) LTBF OTLTBF Equity shares 2 - Holdings in collective investment schemes 160,149 74,946 Rights under derivative contracts 4,069 - Fixed interest securities 3,038,102 - Bank and approved institution deposits 1 month or less 2,159 - Assets held to match linked liabilities 58,706,578 - Other debtors due in 12 months or less 71,575 - Deposits no time restrictions with approved institutions 6,888 8 Accrued interest and rent 67,053-62,050,375 74,954 Liabilities transferred (Form 14 and Form 15) LTBF OTLTBF Mathematical reserves 61,842,937 - Provisions - taxation 37,816 - Amounts owed to credit institutions 5,045 - Creditors 40, ,926, Net assets transferred 124,153 74,843 Long term business fund transferred 61,967,091 14

19 Returns under the Accounts and Statements Rules Supplementary notes *4001* Brought forward amounts The application of different exchange rates to translate foreign currencies to sterling results in a difference between the fund brought forward in line 49 compared with the fund carried forward from the previous year at line 59. *4002* Other income and expenditure Other income reported at line 15 represents: Fee and commission income 309, ,227 Receipt of contingent loan and capitalised interest 1,678 3, , ,627 Other expenditure reported at line 25 represents: Contingent loan repayment 90,616 81,000 *4004* Business Transfer Included in Form 40 Line 32 is the long term business fund transferred to Standard Life Assurance Limited on 31 st December 2011 as described in Note *4005* Basis of conversion of foreign currency Assets and liabilities of foreign branches have been translated at the rates of exchange ruling at the financial year end. The results of foreign branches have been translated at an average rate. Other foreign currency transactions have been translated at the exchange rate prevailing at the date of the transaction. Gains and losses arising from such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies have been recognised in the revenue account. 15

20 Returns under the Accounts and Statements Rules Supplementary notes *4008* Provision of management services During the financial year arrangements have been in place for the Company to be provided with management services by the following companies: Standard Life plc Standard Life Assurance Limited Standard Life Investments Limited Standard Life Employee Services Limited *4009* Material connected party transactions In addition to the business transfer described in Note 0204, the material connected party transactions which occurred during the year were as follows: The Company received some 9.9 billion of premiums in respect of reinsurance accepted from its parent undertaking, Standard Life Assurance Limited; The Company paid some 7.2 billion of claims in respect of reinsurance accepted from its parent undertaking, Standard Life Assurance Limited; The Company paid some 137 million to its parent undertaking, Standard Life Assurance Limited, in respect of costs incurred on behalf of the Company and recharged expenses; and The Company paid some 268 million to Standard Life Employee Services Limited, a fellow subsidiary of Standard Life plc, in respect of recharged expenses, including staff and office accommodation costs. *4501* Brought forward amounts The application of different exchange rates to translate foreign currencies to sterling results in a difference between the fund brought forward in line 49 compared to the fund carried forward from the previous year at line 59. *4502* Other income and expenditure Other income included within line 14 is as follows: Sundry income 1,734 5,140 16

21 Returns under the Accounts and Statements Rules Supplementary notes Other expenditure included within line 26 is as follows: Administrative expenses 22,251 22,166 Finance costs 2,100 1,345 Business transfers out 58,706,578-58,730,929 23,

22 Returns under the Accounts and Statements Rules Certificate by the directors required by IPRU(INS) 9.3(5) and IPRU(INS) Appendix 9.6 STANDARD LIFE INVESTMENT FUNDS LIMITED Global business We certify that - 1. (a) the return has been properly prepared in accordance with the requirements in IPRU(INS), GENPRU and INSPRU; and (b) we are satisfied that: (i) throughout the financial year in question, the insurer has complied in all material respects with the requirements in SYSC and PRIN as well as the provisions of IPRU(INS), GENPRU and INSPRU. 2. (a) no long-term insurance business has been carried on by the insurer since 23:59 on 31 December 2011, when all business was transferred to Standard Life Assurance Limited in accordance with the terms of a scheme under Part VII of the Financial Services and Markets Act 2000 approved by the Court of Session in Edinburgh on 20 December 2011; (b) there is no intention to carry on further any such business; and (c) the insurer is not carrying on general insurance business.. Chief Executive P S MATTHEWS.. Director J GILL.. Director M HESKETH 18

23 Returns under the Accounts and Statements Rules Report of the auditors to the directors pursuant to IPRU(INS) rule 9.35 STANDARD LIFE INVESTMENT FUNDS LIMITED Global Business Independent auditors report to the directors pursuant to rule 9.3 (6) of the Interim Prudential Sourcebook for Insurers We have audited the following documents prepared by the insurer pursuant to the Accounts and Statements Rules set out in part I and part IV of chapter 9 to IPRU(INS) the Interim Prudential Sourcebook for Insurers, GENPRU the General Prudential Sourcebook and INSPRU the Prudential Sourcebook for Insurers ("the Rules") made by the Financial Services Authority under section 138 of the Financial Services and Markets Act 2000: Forms 40 to 43 and 45, (including the supplementary notes) ("the Forms"); We are not required to audit and do not express an opinion on: Forms 46 and 47, (including the supplementary notes); the certificate required by IPRU(INS) rule 9.3(5). Respective responsibilities of the insurer and its auditors The insurer is responsible for the preparation of an annual return (including the Forms) under the provisions of the Rules. Under IPRU(INS) rule 9.11 the Forms are required to be prepared in the manner specified by the Rules and to state fairly the information provided on the basis required by the Rules. It is our responsibility to form an independent opinion as to whether the Forms meet these requirements, and to report our opinion to you. We also report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us: or the Forms are not in agreement with the accounting records and returns; or we have not received all the information we require for our audit. This report has been prepared for the directors of to comply with their obligations under IPRU(INS) rule 9.3 (5) and for no other purpose. We do not, in providing this report, accept or assume responsibility for any other purpose save where expressly agreed by our prior consent in writing. Basis of opinion We conducted our work in accordance with Practice Note 20 'The audit of insurers in the United Kingdom (Revised)' issued by the Auditing Practices Board. Our work included examination, on a test basis, of evidence relevant to the amounts and disclosures in the Forms. The evidence included that previously obtained by us relating to the audit of the financial statements of the insurer for the financial year. It also included an assessment of the significant estimates and judgements made by the insurer in the preparation of the Forms. 19

24 Returns under the Accounts and Statements Rules Report of the auditors to the directors pursuant to IPRU(INS) rule 9.35 We planned and performed our work so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the Forms are free from material misstatement, whether caused by fraud or other irregularity or error and comply with IPRU(INS) rule Opinion In our opinion the Forms fairly state the information provided on the basis required by the Rules as modified and have been properly prepared in accordance with the provisions of those Rules. PricewaterhouseCoopers LLP Chartered Accountants Date 20