ABRDN EM SMA Completion Fund · NASDAQ:ASEMX
ABRDN EM SMA Completion Fund — Standard Life — Investor Presentation (February 2016)
23 slides from ABRDN EM SMA Completion Fund's investor presentation, February 2016
Slide 1: Solvency II and capital insight session
Standard Life plc Solvency II and capital insight session
Slide 2: Forward-looking statements
This presentation may contain certain “forward-looking statements” with respect to certain of Standard Life's plans and its current goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements containing the words “believes”, “intends”,
Slide 3: Our simple business model will continue to serve us well under Solvency II
Our simple business model will continue to serve us well under Solvency II • Standard Life is well capitalised with a stable Solvency II surplus • Solvency II regulatory capital position reflects our focus on fee business • We continue to think about capital in the same way • Our business model and
Slide 4: Well capitalised with a stable Solvency II surplus
Well capitalised with a stable Solvency II surplus
Slide 5: Well capitalised with a stable Solvency II surplus
Well capitalised with a stable Solvency II surplus £1.2bn Entity level SII capital not recognised £2.1bn Group regulatory surplus 162% Group regulatory solvency ratio £5.5bn Group • Position reflects our focus on fee business Solvency II £3.4bn and supports our progressive dividend policy Group capi
Slide 6: £4.9bn out of £5.5bn regulatory capital is tier 1
£4.9bn out of £5.5bn regulatory capital is tier 1 Tier 2 11% £0.6bn Capital from subordinated debt £0.9bn Capital from subordinated debt Tier 1 89% £4.0bn Excess of assets over liabilities1 High quality regulatory capital resources – 144% of SCR covered by tier 1 capital 1. Group own funds include n
Slide 7: Benefiting from additional capital not recognised at Group level
Benefiting from additional capital not recognised at Group level £1.2bn Entity level SII capital not recognised1 £3.3bn 197% £2.1bn SII surplus Entity level Solvency II capital resources that cannot yet be 162% SII solvency ratio £6.7bn distributed to SL plc Total Solvency II £5.5bn Group capital2 S
Slide 8: Stable regulatory surplus
Stable regulatory surplus Regulatory £1.2bn capital not £1.4bn £1.4bn £1.0bn £1.2bn £1.2bn recognised in £1.0bn £1.2bn £1.2bn £1.1bn Group position £Xbn £Xbn £Xbn Stable regulatory £2.1bn Group surplus £2.1bn £2.1bn £2.0bn £2.2bn £2.0bn £2.2bn £2.2bn £2.0bn £2.1bn X% X% X% Up 20% Down 20% Up 1.0% Do
Slide 9: Understanding our Solvency II capital position
Understanding our Solvency II capital position
Slide 10: What are Solvency II capital and capital requirements?
What are Solvency II capital and capital requirements? Regulatory £5.5bn Our Solvency II assets less liabilities and other capital items capital Capital Amount of capital resources we must hold to protect against £3.4bn requirement 1-in-200 year adverse event Example 1-in-200 standalone stress event
Slide 11: Regulatory capital landscape
Regulatory capital landscape Regulatory framework Entity level Contribution to Group SII position Standard Life Investments BIPRU BIPRU SLAL: SII internal model SLAL: SII internal model UK and Europe Pensions and Savings SLIL: SII standard formula SLIL: SII standard formula Standard Life plc n/a SII
Slide 12: Capital requirements reflect well diversified set of risks
Capital requirements reflect well diversified set of risks Other1 11% Operational risk Spread business, pension scheme, Credit 6% shareholder fund assets Credit 32% Longevity Spread business, pension scheme Longevity 18% £3.4bn Equity Fee business, with-profit fund Group SCR Persistency Fee business
Slide 13: Capital requirements reflect focus on fee business and strong pension scheme
Capital requirements reflect focus on fee business and our strong pension scheme and with profits funds Other1 18% Spread business 32% (£9bn of liabilities) Pension scheme £3.4bn & WPF 21% Group SCR Fee business Operational 26% 3% (£114bn of liabilities) Fee business, strong pension scheme and WPF a
Slide 14: Fee business generates regulatory capital in form of VIF
Fee business generates regulatory capital in form of VIF VIF is the value of future profits that contributes to capital Impact of VIF on our Solvency II position Example… Premium paid of £1,000 Future income Time less expenses: £5 … £5 … VIF contribution VIF (contribution to regulatory to Solvency I
Slide 15: Large pension scheme surplus dilutes our Solvency II ratio
Large pension scheme surplus dilutes our Solvency II ratio Pension scheme has a Even after adverse event Nevertheless, Solvency II requires a large IFRS surplus surplus remains large capital requirement to be recognised £0.3bn £0.3bn £0.3bn impact Capital Regulatory requirement capital £0.9bn IFRS p
Slide 16: How we think about our capital
How we think about our capital
Slide 17: Shareholders' equity used efficiently
Shareholders’ equity used efficiently £1.2bn £6.7bn £5.5bn (£1.5bn) £1.5bn £4.0bn £0.9bn (£2.9bn) £1.7bn (£0.7bn) (£2.3bn) Group Other entity Total Remove Remove VIF Remove WPF Add IFRS Add valuation IFRS equity Remove pension Readily Solvency II level Solvency II sub-debt contribution and pension v
Slide 18: Subsidiary IFRS profits drive dividends to SL plc
Subsidiary IFRS profits drive dividends to SL plc Sustained growth in cash generation Dividends not constrained by regulatory capital Dividends to Cash IFRS profit SL plc and generation shareholders Driving dividends to shareholders: • 94% of underlying income is fee based • Subsidiaries efficiently
Slide 19: Capital in plc supports strategy and progressive dividend
Capital in plc supports strategy and progressive dividend Continued focus on SL plc liquid resources £1.5bn £1.1bn £1.1bn and liquid resources £0.9bn SL plc cash £0.6bn £0.7bn £0 2011 2012 2013 2014 2015 £1.1bn of liquid resources supporting: • Planned increase in HDFC Life stake to 35% (subject to
Slide 20: Our business model under Solvency II
Our business model under Solvency II
Slide 21: Our simple business model will continue to serve us well under Solvency II
Our simple business model will continue to serve us well under Solvency II Maximising Lowering unit Increasing assets Driving profit revenue costs Optimising the balance sheet • Driving further capital efficiency • On-going commitment to progressive dividend policy Balancing investment for future gr
Slide 22: Summary
Summary • Our simple business model will continue to serve us well under Solvency II • Standard Life is well capitalised with a stable Solvency II surplus • Solvency II regulatory capital position reflects our focus on fee business • We continue to think about capital in the same way • Our business
Slide 23: www.standardlife.com
www.standardlife.com Read our latest financial results Our financial results are available online and on our iPad app at standardlife.com/results Standard Life plc is registered in Scotland (SC286832) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. www.standardlife.com © 2016 Standard Li
Standard Life — Investor Presentation (February 2016) on 6ix