Standard Life cashes in on buoyant Canadian property market

Life assurance group Standard Life said its Canadian subsidiary has improved its risk profile by renegotiating an existing reinsurance arrangement.

Standard Life Assurance Company of Canada has also offloaded two office properties, and along with the renegotiated reinsurance arrangement these disposals should result in a one-off contribution to operating profit before tax of around £75m this year.

"We have taken advantage of significant demand in the market for premier quality investment properties across Canada, while at the same time reducing shareholder exposure to property as an asset class," revealed Jackie Hunt, Chief Financial Officer of Standard Life.

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"Separately, the renegotiation of an existing reinsurance arrangement has also helped to improve the risk profile of our business while having a positive impact on both capital and operating profit ... Excluding these two transactions, our Canadian business continues to trade in line with expectations," she added.

JH