Standard Life Aberdeen announced this morning it would sell its insurance division to Phoenix Group for £3.24bn, as it posted 2017 pretax profit of £1bn.
“This transaction completes our transformation to a capital light investment business,” Chairman Gerry Grimstone said in a statement, published alongside the company’s first set of annual results since it formed last year through the 11 billion pound merger of two Scottish rivals. Grimstone added that the deal concludes “a process started in 2010 with the sale of Standard Life Bank, continuing with the sale of our Canadian business and the merger last year between Standard Life and Aberdeen Asset Management.”
SLA said in a separate statement that Grimstone would stand down as chairman at the end of 2019.
Clive Bannister, CEO of Phoenix Group, said the deal “establishes Phoenix as the pre-eminent closed life fund consolidator in Europe with more than 10 million policyholders and supports a significant increase in Phoenix’s cash generation”.