Strong operating momentum and excellent progress against 3-year strategy

 

Uniquely positioned in attractive markets

Strong execution of strategic priorities

Profitable growth driving balance sheet strengthening 

Our results demonstrate strong progress delivering on our strategic priorities. Further profitable growth and a strengthened Solvency balance sheet have supported increased shareholder returns and greater financial flexibility for the future, underpinned by the significant and growing levels of excess cash our business generates. We are firmly on track to deliver our 2026 financial targets, building momentum by continuing to sharpen our competitive position in one of the world’s most attractive savings and retirement markets. Operating as Standard Life plc brings our most trusted brand to the forefront, demonstrating our commitment to helping our customers achieve better outcomes and greater financial security in later life. We look to the future with confidence.

- Andy Briggs, Group Chief Executive Officer

Strong FY 2025 financial performance across all key metrics: 

  31 December 2025 31 December 2024 Change

Operating Cash Generation1

Total Cash Generation2

£1,474m

£1,711m

£1,403m

£1,779m

+5%

-4%

Shareholder Capital Coverage Ratio3,4

Solvency II surplus4

Solvency II leverage ratio5

176%

£3.6bn

33%

172%

£3.5bn

36%

+4%pts

+2%

-3%pts

IFRS adjusted operating profit

Cumulative annual run-rate cost savings

IFRS loss after tax

IFRS adjusted shareholders’ equity

£945m

£180m

£(394)m

£3,098m

£825m

£63m

£(1,078)m

£3,656m

+15%

+286%

+63%

-15%

2025 Final dividend per share

2025 Total dividend per share

28.05p

55.40p

27.35p

54.00p

+2.6%

+2.6%

5% growth in Operating Cash Generation1 and 15% growth in IFRS adjusted operating profit driven by continued operating momentum in core businesses

Pensions and Savings (Workplace and Retail): momentum in flows and improving margins driving strong growth

  • 23% IFRS adjusted operating profit growth in our capital-light fee-based business to £389m driven by 7% growth in average assets under administration (‘AUA’) to £204.6bn (FY 2024: £191.5bn) and cost efficiencies driving a 2bps margin improvement to 19bps (FY 2024: 17bps)
  • 13% Operating Cash Generation1 (‘OCG’) growth to £396m (FY 2024: £350m)
  • Workplace net inflows of £5.3bn (FY 2024: £5.3bn) comprised £10.0bn gross inflows (FY 2024: £9.3bn); new Workplace members up 14% in 2025 to 247k, total Workplace customers 3 million 
  • Retail net outflows6 improved to £7.8bn (FY 2024: £8.6bn) reflecting retail strategy green shoots


Retirement Solutions (Annuities): increased contribution to operating cash benefiting from new business and in-force management actions

  • 3% OCG1 growth in our capital-utilising spread-based business to £879m driven by growth in average AUA to £40.2 billion (FY 2024: £39.0bn) and OCG margin improvement to 219bps (FY 2024: 218bps), supported by our capital efficiency, scale and recurring management actions
  • 19% IFRS adjusted operating profit growth to £563m (FY 2024: £474m) 
  • Group Contractual Service Margin (‘CSM’) (gross of tax) grew 17% to £3,806m (FY 2024: £3,257m)    
  • £1.2bn individual annuity premiums written in 2025 (FY 2024: £1.0bn) and market share increased to 15%
  • £3.9bn Pension Risk Transfer (‘PRT’) volumes written in 2025 (FY 2024: £5.1bn) included our largest ever deal at £1.9bn
  • Disciplined capital deployment maintained through total annuities strain £162m (FY 2024: £206m) and the generation of lifetime IRRs of more than 20% in PRT

Strong execution across all strategic priorities

  • Continued execution across all our strategic priorities, with an emphasis on customer engagement, distribution and continued strong trading in our Workplace and Annuities businesses 

Grow: meeting more of our existing customer needs and acquiring new ones

  • Deepened customer engagement

    • Launched our in-house Retail advice proposition to help those who wouldn’t usually consider paid advice gain access to the support they need

    • Widened distribution of our products via adviser partnerships; our smoothed managed fund is now available on the Quilter platform

    • Launched Annuity Desk for Standard Life customers to support a digital customer experience

    • Broadened our wide range of digital tools including our Family Finance Hub and Mixed Income Builder to support households with engaging planning and budgeting options

  • Expanded product build-out
    • Completed our portfolio of innovative retirement income solution products with the launch of the Guaranteed Lifetime Income plan
    • Innovated PRT solutions through longevity insurance novations and gender equalising benefits, making our PRT proposition more attractive to customers

Optimise: optimising our scale in-force business and balance sheet

  • Unique in-house expertise delivering better customer outcomes and enhancing returns 

    • £560m recurring management actions delivered in 2025 (FY 2024: £537m)

    • £7bn of £41.8bn annuity-backing assets managed in-house, with planning progressing to in-house a further £20bn

  • Excess cash generation has enabled further deleveraging
    • $250m debt repaid in February 2025 and £197m repaid in December 2025
    • Solvency II leverage ratio5 33% (FY 2024: 36%)

Enhance: transforming our operating model and culture 

  • Cumulative run-rate cost savings increased to £180m (FY 2024: £63m), £55 million ahead of our original delivery profile by 2025
  • Progressing our migrations 
    • 1.9m policies migrated to TCS BaNCS in 2025
    • Entered into a strategic partnership with Wipro; ALPHA platform covering 1.9m policies now transferred and serviced by Wipro
    • 75% policies are now on their end-state technology, up from 45% in 2024

A progressive and sustainable ordinary dividend policy7

  • The Board is recommending a 2.6% increase in the Final 2025 dividend to 28.05p per share; Total dividend 55.40p per share (FY 2024: 54.00p per share)
  • At 31 December 2025, distributable reserves at Standard Life plc, the Group’s holding company that pays the dividends to shareholders, stood at £5,800m (FY 2024: £5,571m)
  • Alongside distributable reserves, when assessing dividend affordability the Board considers the quantum and trajectory of the Group’s OCG1 and Shareholder Capital Coverage Ratio3

Uniquely positioned in attractive, growing markets and strengthening our competitive advantages

  • The UK long-term savings and retirement market is set to grow by c.70% over the next decade8 
  • Positioned to win as our competitive advantages of customer engagement, capital and cost efficiencies strengthen
  • Workplace:
    • Expectations of c.£80bn9 annual market flows with ambitions to consolidate our top-3 position with potential for accelerated growth from market consolidation and expected contribution increases
    • £1.0bn of wins secured for 2026 to date with a medium term opportunity pipeline of more than £10bn
  • Retail:
    • Expectations of c.£150bn10 annual market flows with ambitions to move from a top-10 position to top-5
    • Focus on realising the significant opportunity still available to leverage digital infrastructure across our 12m strong customer base
  • Annuities: 
    • Expectations of c.£35-55bn11 annual market flows in PRT and c.£8-9bn12 in individual annuities, with ambitions to maintain our top-5 position across annuities
    • Continued disciplined capital deployment in annuities consistent with our diversified business mix and focus on value over volume. Expectation to deploy up to c.£200m of capital across PRT and individual annuities in 2026 
    • £1.6bn of PRT transactions completed or at an exclusive stage in 2026 to date

Outlook

Firmly on track across all 2026 financial targets

  • Firmly on track to deliver all 2026 financial targets which support our progressive and sustainable dividend policy7 and creates financial flexibility 

  • We expect to deliver c.£500m of excess cash in 2026

  Financial target Progress to date
Cash • Mid-single digit percentage growth p.a. in Operating Cash Generation1
• Total cash generation2 3-year target of £5.1bn across 2024–26		 • 5% growth year-on-year in FY 2025
• £3.5bn achieved cumulatively across 2024–25
Capital • Operate within our 140–180% Shareholder Capital Coverage Ratio3 operating range
• SII leverage ratio5 of c.30% by the end of 2026		 • 176% at the end of FY 2025
• 3% point improvement to 33% in FY 2025
Earnings • c.£1.1bn of IFRS adjusted operating profit in 2026
• £250m of annual run-rate cost savings by the end of 2026		 • 15% growth year-on-year in FY 2025 to £945m
• £180m run-rate savings achieved by the end of FY 2025
  • Mid-single digit OCG growth going forwards supports the generation of at least £1bn Free Cash Flow per annum and over £400m in excess cash 
  • 2026 is our final year of using excess cash to de-lever. Excess cash generated post-2026 will be available to be deployed to the highest returning opportunities, in line with our capital allocation framework
  • In 2027, our aim is for IFRS shareholders’ equity to grow, excluding economics
  • We anticipate announcing our post-2026 plan in Q4 2026  

Information required under the Disclosure Guidance & Transparency Rules (‘DTR’)

Information required to be communicated in unedited full text, in accordance with DTR 6.3.5R(1A), is included in the Annual Report and Accounts.

In accordance with UK Listing Rule 6.4.1, a copy of the Annual Report and Accounts has been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The document may also shortly be accessed via the Standard Life website at: https://www.standardlifeplc.com/investors/results-reports-and-presentations/

Enquiries

Investors/analysts:

Claire Hawkins, Director of Corporate Affairs & Brand, Standard Life
+44 (0)20 4559 3161

Joanne Roberts, Investor Relations Director, Standard Life 
+44 (0)20 4559 4673

Media:

Tom Blackwell, FTI Consulting 
+44 (0)203 727 1051

Shellie Wells, Corporate Communications Director, Standard Life 
+44 (0)20 4559 3031

Presentation and webcast details

There will be a live virtual presentation for analysts and investors today starting at 09:30 (GMT). You can register for the live webcast at: Standard Life FY 2025 results.

A copy of the presentation and a detailed financial supplement will be available shortly at: 
https://www.standardlifeplc.com/investors/results-reports-and-presentations/

A replay of the presentation and transcript will also be available on our website following the event.

There will also be an additional Q&A event aimed at retail investors, hosted by Andy Briggs, Group CEO, and Nicolaos Nicandrou, Group CFO, following a replay of the Group’s Investor Presentation, via Investor Meet Company on 20 March 2026, starting at 12:30 (GMT).

The Investor Meet Company presentation and Q&A is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 19 March 2026, 09:00 (GMT), or at any time during the event.

Investors can sign up to Investor Meet Company for free and add to meet Standard Life plc via: https://www.investormeetcompany.com/standard-life-plc/register

Dividend details

The recommended Final 2025 dividend of 28.05 pence per share is expected to be paid on 20 May 2026. The ordinary shares will be quoted ex-dividend on the London Stock Exchange as of 9 April 2026.

The record date for eligibility for payment will be 10 April 2026.

Footnotes

1. Operating Cash Generation (‘OCG’) represents the sustainable level of ongoing cash generation from our underlying business operations, that is remitted from our Life Companies to the Group.

2. Total Cash Generation represents the total cash remitted from the operating entities to the Group, comprising OCG, non-recurring management actions and the release of free surplus above capital requirements in the Life Companies.

3. The Shareholder Capital Coverage Ratio excludes Solvency II Own Funds and Solvency Capital Requirements of unsupported With-Profit funds and unsupported pension schemes.

4. 31 December 2025 Solvency II capital position is an estimated position.

5. Solvency II leverage ratio calculation = debt (all debt including RT1) / SII regulatory Own Funds. Ratio allows for currency hedges over foreign currency denominated debt.

6. Includes reallocation of flows and AUA for International Bonds to Retail from Europe, and held for transfer Corporate Trustee Investment Plan (‘CTIP’) mandate to Other from Workplace.

7. The Board will continue to prioritise the sustainability of our dividend over the long term. Future dividends and annual increases will be subject to the discretion of the Board, following assessment of longer-term affordability. At 31 December 2025, distributable reserves at Standard Life plc, the Group’s holding company that pays dividends to shareholders, stood at £5,800 million (FY 2024: £5,571 million), supported by distributions from its main operating companies which continue to report under UK GAAP and carry sizeable distributable reserves. In 2025 the Group’s main operating subsidiaries generated strong UK GAAP net profits after hedging impacts, which supported the cash remittances to Group. In the consolidated IFRS financial statements, the Group is targeting a positive pre-hedge post-dividend IFRS net profit contribution to the IFRS shareholders’ equity. The Group accepts the hedge-related volatility that impacts IFRS shareholders’ equity, which is a known consequence of our Solvency II hedging strategy that is designed to protect our cash, capital and dividend. In this overall context and consistent with previous guidance, the Board considers that the Group’s consolidated IFRS shareholders’ equity is not a constraint to the payment of our dividends.

8. Company analysis of market data and industry forecasts, including 2024 LCP Pension Risk Transfer report, NMG, The 2024 Purple Book and publicly available FY 2024 and HY 2025 financial disclosures.

9. Company estimate based on NMG market model (2024).

10. NMG market model (2024) data.

11. Company estimate, based on 2025 LCP Pension Risk Transfer report.

12. Company estimate based on publicly available information.

Disclaimers

On 24 February 2026 we changed our name from Phoenix Group Holdings plc to Standard Life plc. References to performance to 31 December 2025 were under Phoenix Group Holdings plc.

This announcement in relation to Standard Life plc and its subsidiaries (the ‘Group’) contains, and the Group may make other statements (verbal or otherwise) containing, forward-looking statements and other financial and/or statistical data about the Group’s current plans, goals, targets, ambitions, outlook, guidance and expectations relating to future financial condition, performance, results, strategy and/or objectives.

Statements containing the words: ‘believes’, ‘intends’, ‘will’, ‘may’, ‘should’, ‘expects’, ‘plans’, ‘aims’, ‘seeks’, ‘targets’, ‘continues’ and ‘anticipates’ or other words of similar meaning are forward looking. Such forward-looking statements and other financial and/or statistical data involve known and unknown risks and uncertainty because they relate to future events and circumstances that are beyond the Group’s control. For example, certain insurance risk disclosures are dependent on the Group’s choices about assumptions and models, which by their nature are estimates. As such, actual future gains and losses could differ materially from those that the Group has estimated. 

Other factors which could cause actual results to differ materially from those estimated by forward-looking statements include, but are not limited to: domestic and global economic, political, social, environmental and business conditions; asset prices; market-related risks such as fluctuations in investment yields, interest rates and exchange rates, the potential for a sustained low-interest rate or high-interest rate environment, and the performance of financial or credit markets generally; the regulations, policies and actions of governmental and/or regulatory authorities including, for example, climate change and the effect of the UK’s version of the ‘Solvency II’ regulations on the Group’s capital maintenance requirements; developments in the UK’s relationship with the European Union; the direct and indirect consequences of the conflicts in Ukraine and the Middle East for European and global macroeconomic conditions and related or other geopolitical conflicts; political uncertainty and instability including the rise in protectionist measures; the impact of changing inflation rates (including high inflation) and/or deflation; information technology (including developments and use of Artificial Intelligence) or data security breaches (including the Group being subject to cyber-attacks);  the development of standards and interpretations including evolving practices in sustainability and climate reporting with regard to the interpretation and application of accounting; the limitation of climate scenario analysis and the models that analyse them; lack of transparency and comparability of climate-related forward-looking methodologies; climate change and a transition to a low-carbon economy (including the risk that the Group may not achieve its targets); the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively; the implementation of rules, regulations or other actions with an opposing stance to sustainability matters or policies; market competition; changes in assumptions in pricing and reserving for insurance business (particularly with regard to mortality and morbidity trends, gender pricing and lapse rates); the timing, impact and other uncertainties of any acquisitions, joint ventures, disposals or other strategic transactions (including any associated integration); risks associated with arrangements with third parties; inability of reinsurers to meet obligations or unavailability of reinsurance coverage; and the impact of changes in capital and implementing changes in IFRS 17 or any other regulatory, solvency and/or accounting standards, and tax laws and practices and other legislation and regulations in the jurisdictions in which members of the Group operate. 

As a result, the Group’s actual future financial condition, performance and results may differ materially from the plans, goals, targets, ambitions, outlook, guidance and expectations set out in the forward-looking statements and other financial and/or statistical data within this announcement. The information in this announcement does not constitute an offer to sell or an invitation to buy securities in Standard Life plc or an invitation or inducement to engage in any other investment activities. The Group undertakes no obligation to update any of the forward-looking statements or data contained within this announcement or any other forward-looking statements or data it may make or publish. Nothing in this announcement constitutes, nor should it be construed as, a profit forecast or estimate. No representation is made that any of these statements will come to pass or that any future results will be achieved. As a result, you are cautioned not to place undue reliance on such forward-looking statements contained in this announcement.