Standard Life UK financial services chief executive Trevor Matthews says the company is not ruling out further acquisitions after its failed Resolution bid.
He says he is disappointed the deal did not work out but stresses Standard’s core focus is on organic growth.
Matthews says: “I am sorry it did not work out with Resolution but it was not integral to our growth strategy. We will just continue doing what we are doing, keeping an eye out for future opportunities.”
He says Standard will not be rushed into a deal as consolidation is difficult in the UK life market due to problems with legacy systems and providers’ different business mixes.
He says: “There are synergies with a number of different combinations of firms but the synergies are not as great as people might have thought, which is a problem in this market. There is a solid history of companies putting things together and that not working.”
The emergence of wrap is another key driver in the life market, says Matt-hews. He believes the traditional life company in the UK will disappear due to the growing dominance of wrap. He says 57 per cent of money placed through Standard’s wrap is new money.
Matthews says: “It happened Down Under, the traditional insurance company has sort of disappeared as everyone now is using a platform. Sometimes they do not even manufacture one of their own, they borrow it from someone else.”