Standard Life Aberdeen to sell insurance business to Phoenix Group

Standard Life Aberdeen to sell insurance business to Phoenix Group

Numis Securities boosted their target price on Standard Life Aberdeen from GBX 445 ($6.15) to GBX 481 ($6.65) and gave the stock a hold rating in a report on Friday, October 27th. reiterated a buy rating on shares of Standard Life Aberdeen in a report on Thursday, November 9th.

The company also reported its first full year results since the merger of Standard Life with Aberdeen Asset Management.

Standard Life Aberdeen has sold its insurance arm to specialist insurer Phoenix in a deal worth £3.24bn.

However, the group said it saw strong demand for emerging market debt and multi-asset solutions such as MyFolio and diversified growth funds.

"In partnering with Phoenix Group, whose expertise is in administering and servicing long-term savings, Standard Life Aberdeen is able to realise attractive value for the disposed businesses, while continuing to benefit from access to related assets and flows".

The firm was also hit by a move by Lloyds Banking Group earlier this month which announced it is to withdraw £109bn of assets now managed by Standard Life Aberdeen for Scottish Widows, almost 17% of Standard Life Aberdeen's AUM.

The assets had been managed by Aberdeen for several years. Standard Life Aberdeen will retain its adviser platforms Wrap, Elevate and Parmenion and financial advice business 1825.


This will leave the Standard Life Aberdeen board with two women and eleven men. The sale is expected to complete in the third quarter of 2018.

The announcement comes a week after it lost its biggest client Lloyds Banking Group and a £109bn asset management contract due to competition issues.

Assuming the deal with Phoenix is completed, it would complete Standard Life Aberdeen's transformation under Sir Gerry from a life assurer into one of Europe's largest pure-play asset managers.

"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 also announced that chairman Sir Gerry Grimstone was standing down by the end of 2019 after 11 years.

Scottish Widows said it could reconsider the mandates if Standard Life Aberdeen made changes to ensure it was not competing in Scottish Widows' core areas.

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