Over the past three months our focus on improving both the quality and quantity of the services we provide to customers has remained at the heart of Standard Life’s growth strategy.
Standard Life’s financial results for H1 2014 were overwhelmingly positive. Something we owe, in no small part, to you. Group operating profit before tax rose by 12% to GBP 339 million over the past six months. Asia and Emerging markets now account for an increased figure of GBP 6m of this profit, with our customer base in these regions increasing by 12% in the first half of the year. At the same time, Standard Life Hong Kong has also achieved an excellent result in the first half of 2014. According to the latest statistics from the Office of the Commissioner of Insurance (OCI), Standard Life in Hong Kong was ranked second in the Class C market in the first half of 2014 with a market share of 10.96%, up from third position and a market share of 6.44% in the same period last year. Thank you for making this possible.
The recent publication of Guidance Note 15 (GN15) by the Office of the Commissioner of Insurance (OCI) in Hong Kong at the end of July 2014, places increased focus on the sales process for Class C business/ILAS products. GN15 focused on; improved clarity for customers, increased suitability and reasonability assessments, changes to remuneration structure for advisers coupled with changes to post-sale control. The implementation for compliance to GN15 is 1st January 2015. At Standard Life, we are working both with the OCI, HKFI and our partners to ensure a smooth transition into 2015.
Earlier this year we undertook a review of the processes we have in place to adapt to the changing market. In advance of the recommendations in relation reasonability assessments in GN15, Standard Life already has these processes in place. We will continue to review our operating model to ensure compliance with GN15, in particular, looking at how best to incorporate any improvements in a way that suits both our partners and customers.
In July we introduced eight new investment choices from a new fund manager, as part of our strategy to expand the choice of products we offer. Each one of these focuses on different asset and country allocations, enabling customers to select the right path for their savings. With the addition of these funds, Standard Life now provides over 290 investment choices with 25 investment managers.
Over the past few months, we’ve been busy building our profile in the sports world. Our exclusive three year partnership with tennis star, Andy Murray, will see him compete with the Standard Life logo on his playing arm. In doing so, our brand will be exposed to potential clients worldwide.
Additionally, Standard Life Investments’ sponsorship of the men’s golf championship, the Ryder Cup, will build on this newfound presence in the sports world. As the first worldwide sponsors of the event, we’re able to bring the Standard Life brand to golf fans internationally in connection with this historic tournament, for both the 2014 and 2016 competitions.
In both these partnerships, we share a Scottish connection – Andy Murray was born in Glasgow, and the Ryder Cup 2014 will take place in Perthshire. They also highlight the importance Standard Life places on expanding our international presence.