Premiums and deposits in Canada grew 15% to $1.3 billion in the first quarter of 2010, Standard Life Financial Inc. reported Thursday.

“We have started 2010 with confidence,” said Joseph Iannicelli, president. “Our team has been focusing on growing the Canadian business, and our results for the first quarter point in the right direction. A strong and sustained growth in our retail business drove the overall improvement of our revenue, and this is encouraging.”

In the first quarter of 2009, premiums and deposits were $1.1 billion.

Individual retirement, savings and insurance premiums and deposits increased by 46% to $479 million from $329 million in the year earlier period.

Following the continued improvement in investor confidence, deposits in mutual funds have grown by 72% to $165 millio, up from $96 million a year ago.

Segregated fund sales continued to rise, improving by 134% to $197 million from $84 million in the year earlier period, due to a “well positioned offering” in that segment of the market, the company said.

Group savings and retirement premiums and deposits grew slightly to $657 million from $639 million a year ago, including a 6% increase in the core defined contribution segment.

Group insurance premiums were up 4% to $160 million from $154 million in the year earlier period. “The continued strength of the company’s disability management proposition led to a solid first quarter,” Standard Life said.

Client retention remains high at 93.8% in Q1 2010, compared with 94.2% in Q1 2009.

The Standard Life Assurance Company of Canada sustained its capital and financial strength without any need to access additional capital, reporting a solvency ratio of 217%. The solvency ratio was 213% at Dec. 31, 2009, and 203% at March 31, 2009.

“Standard Life maintains its positive outlook for the rest of 2010, although the external environment is likely to remain uncertain,” the company said.

“The focus on expanding sales and distribution capabilities, as well as introducing new products in 2010, is expected to result in success in all three lines of business and more specifically in the core segments of retail investment funds, disability management and defined contribution pensions.”

Headquartered in Scotland and operating internationally, Standard Life plc provides retirement, investment and insurance solutions to over 6 million customers worldwide.

Montreal-based Standard Life Financial Inc., which wholly owns The Standard Life Assurance Company of Canada and Standard Life Mutual Funds Ltd., is Standard Life plc’s largest operation outside the U.K.

IE