Skandia UK – part of the wealth management division of Old Mutual, has reported a 56% jump in its annual pre-tax profit for the year 2010. On IFRS basis, pre-tax profit was reported at £140 million compared to £90 million reported in 2009.
Assets under management rose by 20% over the previous 12 months to £33.9 billion. The company attributed the growth to robust sales as global equity markets made a strong comeback during the year.
The Skandia Investment Solutions platform performed well during the year and new businesses worth £5 billion out of a total of £6 billion came through it. Gross sales of £6 billion in 2010 marks a robust 46% growth over the same period in 2009.
Skandia consolidated its UK market-share to 7.4% in Q3 2010 from 6.4% in Q4 2009.
The company attributed strong growth in profits to better cost-control and robust revenue growth. Skandia had announced 150 job cuts last February as part of its cost control measures.
“We will continue to deliver customer centric investment solutions and support financial advisers in building successful businesses”, said chief executive Peter Mann.
Commenting on the impending RDR, he added: “The market was evolving towards platforms naturally but the RDR will fuel that transition. As a result the growth of the platform market will hasten exponentially over the next five years and we are ideally positioned to benefit from that growth.
“It is difficult to see how some traditional product providers will compete successfully if they don’t have a platform proposition so it will be interesting to see how the platform market evolves over the next 18 months. Whatever happens, our focus is clear. We will continue to deliver customer centric investment solutions and support financial advisers in building successful businesses”.