Last checked at 21 Jan 2010 07:00
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ST. JAMES'S PLACE plc
27 St. James's Place, London SW1A 1NR
Telephone 020 7493 8111 Facsimile 020 7493 2382
PRESS RELEASE
21 January 2010
ST. JAMES'S PLACE WEALTH MANAGEMENT
NEW BUSINESS
FOR THREE MONTHS TO 31 DECEMBER 2009
RECORD FOURTH QUARTER NEW BUSINESS
RECORD FUNDS UNDER MANAGEMENT & PARTNERSHIP NUMBERS
St. James's Place plc ("SJP"), the wealth management group, today issues its new business update for the three months ended 31 December 2009.
Highlights for the three months are:
New Business
Total single investments of £1.08 billion (2008: £0.72 billion), up 50%
Total new business on an APE basis of £133.2 million (2008: £96.4 million), up 38%
Manufactured new business on an APE basis of £122.7 million (2008: £85.6 million), up 43%
Manufactured business represents 92% of new business (2008: 89%)
Funds Under Management
Funds under management of £21.4 billion, up £1.1 billion over the three months
Net inflow of funds under management of £700 million (2008: £400 million)
Continue to retain over 95% of existing clients' funds
Partnership
Partnership numbers up 9% for the year to 1,464
David Bellamy, Chief Executive, commented:
"We are delighted with our fourth quarter figures. Record new investments and excellent retention are a credit to our entire community and have helped drive Group funds under management to record levels.
We are extremely pleased with the fact that we have grown the Partnership by 9%, the largest annual increase in ten years.
Our overall performance in 2009 gives us both the confidence and a good platform for further growth this year."
The details of the announcement are attached.
Enquiries:
| David Bellamy, Chief Executive | Tel: | 020 7514 1963 |
| Andrew Croft, Group Finance Director | Tel: | 020 7514 1963 |
| Tulchan Communications Group Ltd John Sunnucks/Mal Patel | Tel: | 020 7353 4200 |
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ST. JAMES'S PLACE WEALTH MANAGEMENT
NEW BUSINESS FIGURES TO 31 DECEMBER 2009
TOTAL LONG TERM SAVINGS
| Unaudited 3 Months to 31 December 2009 | Unaudited 12 Months to 31 December 2009 | ||||||||||||||
| New PREMIUMS | 2009 £'m | 2008 £'m | Change % | 2009 £'m | 2008 £'m | Change % | |||||||||
| New Regular Premiums | |||||||||||||||
| - Pensions | 19.4 | 19.8 | (2%) | 75.4 | 87.8 | (14%) | |||||||||
| - Protection | 5.4 | 5.0 | 8% | 19.6 | 19.1 | 3% | |||||||||
| 24.8 | 24.8 | 0% | 95.0 | 106.9 | (11%) | ||||||||||
| New Single Premiums | |||||||||||||||
| - Investment | 455.3 | 315.3 | 44% | 1,389.4 | 1,365.5 | 2% | |||||||||
| - Pensions | 346.7 | 267.4 | 30% | 1,176.6 | 1,070.7 | 10% | |||||||||
| 802.0 | 582.7 | 38% | 2,566.0 | 2,436.2 | 5% | ||||||||||
| Unit Trust Sales (including PEPs and ISAs) | 282.7 | 133.6 | 112% | 892.2 | 685.0 | 30% | |||||||||
| Unaudited 3 Months to 31 December 2009 | Unaudited 12 Months to 31 December 2009 | ||||||||||||||
| 2009 £'m | 2008 £'m | Change % | 2009 £'m | 2008 £'m | Change % | ||||||||||
| NEW BUSINESS (RP + 1/10TH SP) | |||||||||||||||
| Investment | 73.7 | 44.9 | 64% | 228.1 | 205.0 | 11% | |||||||||
| Pensions | 54.1 | 46.5 | 16% | 193.1 | 194.9 | (1%) | |||||||||
| Protection | 5.4 | 5.0 | 8% | 19.6 | 19.1 | 3% | |||||||||
| Total | 133.2 | 96.4 | 38% | 440.8 | 419.0 | 5% | |||||||||
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ST. JAMES'S PLACE WEALTH MANAGEMENT
NEW BUSINESS FIGURES TO 31 DECEMBER 2009
MANUFACTURED LONG TERM SAVINGS
| Unaudited 3 Months to 31 December 2009 | Unaudited 12 Months to 31 December 2009 | ||||||||||||||
| New PREMIUMS | 2009 £'m | 2008 £'m | Change % | 2009 £'m | 2008 £'m | Change % | |||||||||
| New Regular Premiums | |||||||||||||||
| - Pensions | 16.5 | 15.6 | 6% | 63.2 | 59.6 | 6% | |||||||||
| - Protection | 1.2 | 1.4 | (14%) | 4.7 | 6.7 | (30%) | |||||||||
| 17.7 | 17.0 | 4% | 67.9 | 66.3 | 2% | ||||||||||
| New Single Premiums | |||||||||||||||
| - Investment | 452.0 | 311.2 | 45% | 1,372.2 | 1,276.1 | 8% | |||||||||
| - Pensions | 315.4 | 241.3 | 31% | 1,057.2 | 946.8 | 12% | |||||||||
| 767.4 | 552.5 | 39% | 2,429.4 | 2,222.9 | 9% | ||||||||||
| Unit Trust Sales (including PEPs and ISAs) | 282.7 | 133.6 | 112% | 892.2 | 685.0 | 30% | |||||||||
| Unaudited 3 Months to 31 December 2009 | Unaudited 12 Months to 31 December 2009 | ||||||||||||||
| 2009 £'m | 2008 £'m | Change % | 2009 £'m | 2008 £'m | Change % | ||||||||||
| NEW BUSINESS (RP + 1/10TH SP) | |||||||||||||||
| Investment | 73.4 | 44.5 | 65% | 226.4 | 196.1 | 15% | |||||||||
| Pensions | 48.1 | 39.7 | 21% | 169.0 | 154.3 | 10% | |||||||||
| Protection | 1.2 | 1.4 | (14%) | 4.7 | 6.7 | (30%) | |||||||||
| Total | 122.7 | 85.6 | 43% | 400.1 | 357.1 | 12% | |||||||||
| % of total new business | 92% | 89% | 91% | 85% |
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ST. JAMES'S PLACE WEALTH MANAGEMENT
NEW BUSINESS FIGURES TO 31 DECEMBER 2009
Non Manufactured Long Term Savings
Investment premiums of £17.2 million (2008: £89.4 million), amounting to £1.7 million (2008: £8.9 million) on an APE basis.
Pension single premiums of £119.4 million (2008: £123.9 million) and regular premiums of £12.2 million (2008: £28.2 million), amounting to £24.1 million (2008: £40.6 million) on an APE basis.
Protection business of £14.9 million regular premiums (2008: £12.4 million).
Total new business, on an APE basis, of £40.7 million (2008: £61.9 million).
Funds Under Management
The table below provides an analysis of the movement in funds under management:
| Unaudited Year Ended 31 December 2009 | Unaudited Year Ended 31 December 2008 | |||
| £'bn | £'bn | |||
| Opening funds under management | 16.3 | 18.2 | ||
| New money invested | 3.5 | 3.0 | ||
| Net investment return | 2.8 | (3.6) | ||
| 22.6 | 17.6 | |||
| Regular income withdrawals & maturities | (0.4) | (0.4) | ||
| Surrenders & part surrenders | (0.8) | (0.9) | ||
| Closing funds under management | 21.4 | 16.3 | ||
| Annualised surrender rate as a % of average funds under management | 4.0% | 5.2% | ||
Capital
There have been no material changes to solvency capital during the final quarter. The investment policy for non-linked assets remains on a prudent basis, with no exposure to equity investments: non-linked liabilities are matched by government backed gilts and bonds, and surplus assets are invested in AAA rated money market funds. This policy continues to immunise the capital base from stock market falls and both widening spreads and credit defaults on corporate bonds.