Standard Life Financial Inc. said on Thursday that early signs of recovery in the Canadian retail insurance market helped boost premium and deposits 34% in the third quarter.

In the three months ended Sept. 30, premiums and deposits at Standard Life jumped to $1.24 billion from $926 million in the same period last year. The increase is due to stronger sales in individual retirement and savings product lines, the company said.

“For the second quarter in a row, we have delivered solid growth in our retail business. We’re starting to see the benefits of the repositioning we undertook a few years ago,” said Joseph Iannicelli, president. “I am pleased that the Canadian business continues to contribute positively to the growth and strength of the Standard Life group.”

Individual retirement, savings and insurance premiums and deposits surged by 115% to $386 million, from $180 million last year. Term funds sales increased six fold due to strong market demand, and segregated funds sales were up 29% as a result of a more favourable competitive environment.

However, the market for mutual funds remains challenging, the company noted. It saw sales fall by 3% to $94 million in the third quarter, from $97 million last year.

Premiums in the group business rose by 17% in the third quarter. Standard Life’s core defined contribution segment within its group savings and retirement business grew by 37% to $530 million, while group insurance premiums rose 2% to $154 million.

The Standard Life Assurance Company of Canada reported a solvency ratio of 206%, without any need to access additional capital. It also reported a client retention rate of 94%.

“Considerable amounts of liquidity remain in the market as investors are still cautious about investment prospects in the near term. We are poised to take advantage of the opportunities that will arise when individual investors return to the market,” said Iannicelli. “We also remain well positioned to continue leveraging our strengths in our core chosen segments of defined contribution pension and disability management.”

IE