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Asset Management Giant Sells Insurance Arm For $4.5 Billion

Josh O'Neill, Assistant Editor, 26 February 2018


The deal will be paid in cash and shares, the groups announced late last week.

Standard Life Aberdeen will offload its insurance arm to Phoenix Group in a £3.2 billion ($4.5 billion) deal as the UK’s largest listed asset manager looks to focus on its core business. 

Phoenix, the £3 billion insurer, will pay £2.28 billion in cash, and Standard Life Aberdeen will take a 19.99 per cent stake in Phoenix Group.

The sale will see recently-merged Standard Life Aberdeen break from its insurance roots.

Earlier this month, the merger’s merits were tested after Standard Life Aberdeen’s shares slipped 9 per cent after Lloyds Banking Group announced it would pull £109 billion from the asset manager next year. 

Still, Sir Gerry Grimstone, chairman of Standard Life Aberdeen, said the sale to Phoenix "completes our transformation to a capital light investment business". 

“This transaction represents excellent value for our shareholders, including a comprehensive and mutually beneficial strategic relationship entered into with Phoenix Group, a longstanding partner of the firm,” he said. 

Phoenix Group has said it will keep Standard Life Aberdeen’s insurance arm’s operational headquarters in Edinburgh. 

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