Standard Life Aberdeen expects to return £1.75bn capital to shareholders after the sale of its UK and European insurance business to Phoenix completes.
Standard Life announced in February it was selling its insurance arm to Phoenix in a £3bn deal.
Today, ahead of its annual general meeting, the investment firm proposes to return £1bn to shareholders through a “B share scheme” and the remaining £750m will be returned through a share buyback programme.
The return of capital is expected to take place on 25 June.
The company says the rest of the proceeds will be used to pay down its £1.9bn debt as well as going towards other investment and corporate activity.
Standard Life Aberdeen chair Gerry Grimstone says: “We are continuing to focus on harnessing the breadth and depth in our investment capabilities to deliver cost effective solutions to meet the needs of our clients and customers across multiple channels and geographies.”
He says: “The cash generated from the sale will enable us to continue to invest in the development of our business and also to return surplus capital to shareholders.”