TEXT-S&P summary: Standard Life Group

(The following statement was released by the rating agency)

Aug 31 -

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Summary analysis -- Standard Life Assurance Ltd. ------------------ 31-Aug-2012

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CREDIT RATING: A+/Stable/A-1 Country: United Kingdom

Primary SIC: Life insurance

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Credit Rating History:

Local currency Foreign currency

25-Feb-2009 A+/A-1 A+/A-1

10-Jul-2006 A/A-1 A/A-1

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Rationale

The ratings on U.K.-based life assurer Standard Life Group (SL) reflect Standard & Poor's Ratings Services' view of SL's very strong capitalization, strong competitive position, and derisked business model. These factors are partly offset by SL's only modest operating performance and relatively concentrated business profile in terms of geography and product line.

We regard SL's capitalization as very strong, based on the group's capital adequacy according to our capital model. In addition, its regulatory capitalization remains very robust. Our overall view of capitalization incorporates our assessment of the quality of capital, which reflects the relatively sizable value of in-force business (VIF) and the group's hybrid instruments. We anticipate that SL will maintain its currently very strong capitalization in 2012 and 2013.