Strategically and financially compelling transaction that accelerates our vision to be the UK’s leading retirement savings and income business

Standard Life plc (“Standard Life” or the "Company" and, together with its subsidiaries, the "Group") today announces that it has entered into an agreement to acquire Aegon UK plc (“Aegon UK”), containing the UK insurance and pensions operations of Aegon Europe Holding B.V. (“Aegon”) (the “Transaction”), for a total consideration of £2.0 billion. 

The Transaction will be funded through a combination of debt, cash and the issue of new ordinary shares in Standard Life (representing approximately 15.3% of the Group’s enlarged share capital) to Aegon on completion, with Standard Life welcoming Aegon as a new strategic shareholder and asset management partner.

Key Transaction Highlights

Creates UK’s largest retirements savings and income business:

  • Combined group to become #2 in UK Workplace and #2 in UK Retail*
  • Enlarged group will have 16m customers and Assets Under Administration ("AUA") of c.£480bn

Significantly strengthens Standard Life’s Pension and Savings capabilities and customer offering:

  • Increases advice, distribution and digital capabilities across Workplace and Retail

  • Transforms adviser offering by securing a proven platform

  • Enhances ability to meet evolving customer needs 

Materially unlocks value and accelerates the shift to capital-light:

  • Delivers total net synergy value of £0.8bn, comprised of £110m of run-rate pre-tax cost synergies and c. £340m of one-off capital synergies, underpinned by Standard Life’s experience in large and complex life insurance integrations 

  • Operating profit contribution from capital-light, fee based growth earnings increases from 47% as at FY25 standalone, to 57%* for the enlarged group (on a pro-forma basis post synergy realisation)

Unlocks attractive financial outcomes that creates value for shareholders: 

  • Cash: +£160m Operating Cash Generation* growing in line with our mid-single digit % guidance and incremental excess cash generation of £0.4bn over 5 years (after financing and one-off costs) increasing future flexibility to invest or return capital 

  • Capital: Maintain position at upper end of Solvency II Coverage Ratio

  • Earnings: +£190m IFRS adjusted operating profit4 and mid-single digit accretive to adjusted operating EPS by 20295

An efficient funding structure that maintains Standard Life’s capital strength:

  • Attractive valuation – 0.83x P/UT1 on the basis of Aegon UK UT1 of £2.4bn for FY2025 - Combination of debt, cash and newly issued shares consistent with existing Solvency II (SII) leverage ratio target of c.30% 

For further information please review the full press release.

Andy Briggs

Our agreement to acquire Aegon UK significantly accelerates our vision to be the UK’s leading retirement savings and income business. We will be in an even stronger position to meet the evolving needs of our 16 million customers with enhanced digital, advice and distribution capabilities across Workplace and Retail, strengthening our standing in one of the world’s most attractive markets. Furthermore, the transaction accelerates our shift to capital-light whilst strengthening our cash, capital and earnings position to create increased value for shareholders. 
With financial wellbeing at the heart of everything it does, Aegon UK’s values and culture are aligned with our own. Together, we will not only be stronger, we will be better - helping our customers achieve better outcomes and greater financial security in later life. I look forward to welcoming everyone at Aegon UK to Standard Life in due course and working together to capture the huge potential in front of us.

- Group CEO of Standard Life

Lard Friese

Standard Life is the right owner for Aegon UK: we share the same values and a strong commitment to customers, and together the businesses will create the UK’s largest retirement savings and income provider. The businesses are complementary and the combination offers an excellent outcome for Aegon UK’s customers and colleagues. Aegon’s shareholding will provide an opportunity to participate in the future success of the enlarged group.

- Aegon CEO