Strong sales in Standard Life Financial Inc.’s retail business throughout 2009 helped the company boost annual net income to $109 million from $3 million in 2008, the company reported on Wednesday.

Total net inflows in 2009 were $639 million, down slightly from $665 million in 2008, reflecting higher sales in the company’s retail business and lower deposits in the group savings and retirement business.

Individual retirement, savings and insurance premiums and deposits surged by 42% to $1.23 billion in 2009, with strong sales growth of 40% in the fourth quarter amid continued signs of a recovery in the Canadian retail market.

Sales of guaranteed-interest products were particularly strong, the company said, increasing by 228% to $481 million. Segregated fund sales were 25% higher, with an increase of 132% in the fourth quarter due to the competitiveness of the products launched in 2009.

Standard Life said the market for mutual funds was challenging for the majority of the year, with deposits down 11% to $400 million. The market picked up in the fourth quarter, however, following a recovery in equity markets. Fourth quarter deposits jumped 35% to $123 million.

Overall premiums and deposits decreased by 2% to $4.63 billion. Premiums and deposits in the fourth quarter were 12% higher than in Q4 of 2008 thanks to a good performance in retail products.

“In Canada, Standard Life has delivered a strong performance in 2009, despite the uncertain market conditions,” Joseph Iannicelli, president. “We have delivered significant growth in our core segments of retail investment funds, defined contribution pensions and disability management.”

Within group savings and retirement, premiums and deposits in the company’s core defined contribution segment increased by 10% to $1.97 billion. However, overall group savings and retirement premiums and deposits of $2.38 billion were 15% lower.

Group insurance premiums rose 2% to $622 million thanks to new business from both new and existing clients. In addition, the continued strength of the company’s disability management proposition led to a solid fourth quarter, Standard Life said.

The Standard Life Assurance Company of Canada reported a solvency ratio of 213% at the end of the year, without any need to access additional capital.

Looking ahead, Standard Life said the external environment is likely to remain uncertain. The company’s goals for 2010 are to expand sales and distribution capabilities, as well as introduce new products that meet customers’ needs for financial security.

“We will continue to focus on client retention and building strong customer and distributor relationships,” said Iannicelli. “Our aspiration is to provide our customers with the confidence to look forward to a well planned financial future as a consequence of long-term savings and investment propositions we have provided.”

IE