Standard Life Aberdeen sells insurance arm for £3.2bn

Standard Life Aberdeen sells insurance arm to Phoenix

Earlier this month, Scottish Widows and Lloyds Banking Group's Wealth businesses terminated their partnership agreements with Aberdeen Asset Management due to its merger with competitor Standard Life.

Total assets under management were £654.9bn at 31 December 2017, up from £647.6bn on 1 January 2017.

However, inflows from equity investments were up 8% at £16.2bn, from £15.0bn in 2016.

Standard Life Aberdeen announced this morning it would sell its insurance division to Phoenix Group for £3.24bn, as it posted 2017 pretax profit of £1bn.

The results are its first as a combined business since...

Standard Life Aberdeen (LON SLA) traded down GBX 9.60 ($0.13) during trading hours on Tuesday, hitting GBX 376.10 ($5.20).

The sale price includes £2.28 billion in cash and a 19.99 percent shareholding in Phoenix Group. The sale is expected to complete in the third quarter of 2018.

"This completes our transformation from a capital-heavy insurance business", Keith Skeoch, co-chief executive, said.

"We have a diverse range of modern investment capabilities with global distribution and our leading United Kingdom retail platforms are growth engines generating significant net inflows for our asset management business".

The company said Sir Gerry would step down by the end of 2019 having taken the role at Standard Life in 2007.

The results follow last year's merger between Standard Life and Aberdeen Asset Management, and the company noted today that integration was progressing well, with the group now targeting £250 million of annualised cost synergies. A committee has been established to seek a replacement and he will continue in his role until one is found.

"This has been a period of enormous change for the company, and serving the board through this has been both challenging and rewarding".

Julie Chakraverty, Lynne Peacock and Akira Suzuki will retire from the board at its next annual general meeting.

Aberdeen Standard Investments now manages around £48bn on behalf of Phoenix in a partnership deal that has also been extended today.

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