Standard Life plans £1.75bn return to shareholders through Phoenix deal

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.”

Recommended

Antonio-Horta-Osorio-700x450.jpg
1

Failed Scot Wids Standard Life insurance merger talks behind £109bn blow

A breakdown in talks to merge Lloyds’ Scottish Widows arm with Standard Life’s pension and life insurance business led the high street bank to pull £109bn from the asset manager, according to reports. Last week, Standard Life Aberdeen shares fell 6 per cent on news Lloyds decided to end investment management arrangements with the asset manager on £109bn […]

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg
101

How much are advisers charging for pension transfers?

Defined benefit pension transfer charges are being put under the microscope again as the regulator turns over more potential conflicts of interest. With the British Steel Pension Scheme the latest to dominate headlines and the FCA ready to interrogate further as it extends its review to include all firms authorised to give pension transfer advice, […]

Keith Richards: The win-win of social impact investing

We were proud to publish a good practice guide on social impact investing last month as part of an initiative started by an independent advisory group chaired by Allianz Global Investors vice chair Elizabeth Corley. The group had been set up by the Department of Digital, Culture, Media and Sport to increase choice in this […]

FCA logo new 620x430.jpg
6

Robos under fire over suitability and disclosure failings

Robo firms’ shortcomings around suitability, fee disclosure and identifying vulnerable clients have been highlighted in findings from an FCA review today. The regulator reviewed seven firms offering online discretionary investment management services and three firms giving automated advice. The FCA says service and fee-related disclosures at most online discretionary investment management firms in its sample […]

Class-Children-Education-School-Teaching-700.jpg

Pinpoint school fees planning

Many parents value the standard of education offered by independent schools and will pay for that privilege. Planning for the fee payments can help. Even if the children do not go to an independent school, they could go to university. In this case, the children can end up with a huge outstanding student loan that […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment