Standard Life to buy Edinburgh’s Aegon UK in bumper £2 billion swoop: reaction
“Our agreement to acquire Aegon UK significantly accelerates our vision to be the UK’s leading retirement savings and income business” – Standard Life CEO Andy Briggs
Standard Life is to buy Edinburgh-based Aegon UK in a bumper £2 billion deal that creates a pension and savings giant with some 16 million customers.
The proposed acquisition is expected to deliver a total net “synergy value” - or cost savings - in the region of £800 million, which could have longer-term implications for jobs where there are areas of overlap.
The combined group would be the UK’s largest retirement savings and income business with assets under administration of around £480bn. It also establishes Standard Life as the UK’s second largest workplace pensions platform by assets and customers.
Andy Briggs, group chief executive of Standard Life, said: “Our agreement to acquire Aegon UK significantly accelerates our vision to be the UK’s leading retirement savings and income business.
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“We will be in an even stronger position to meet the evolving needs of our 16 million customers with enhanced digital, advice and distribution capabilities across workplace and retail, strengthening our standing in one of the world’s most attractive markets. Furthermore, the transaction accelerates our shift to capital-light whilst strengthening our cash, capital and earnings position to create increased value for shareholders.
“With financial wellbeing at the heart of everything it does, Aegon UK’s values and culture are aligned with our own. Together, we will not only be stronger, we will be better - helping our customers achieve better outcomes and greater financial security in later life.”
Lard Friese, chief executive of Dutch parent group Aegon, said: “Standard Life is the right owner for Aegon UK: we share the same values and a strong commitment to customers, and together the businesses will create the UK’s largest retirement savings and income provider.
“The businesses are complementary and the combination offers an excellent outcome for Aegon UK’s customers and colleagues. Aegon’s shareholding will provide an opportunity to participate in the future success of the enlarged group.”
Last month, Standard Life reported forecast-beating full-year profits as it pointed to a strong performance from its core pensions and savings business.
The firm, which was founded in Edinburgh in 1825, also said its balance sheet strengthened during the year as it posted an adjusted operating profit of £945m for 2025, on an International Financial Reporting Standards (IFRS) basis. That was up 15 per cent on the year before and ahead of market expectations for a profit of about £937m.
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A final dividend per share of 28.05p was declared, making a total dividend pay-out for the year of 55.4p, up from 54p in 2024.
Last September, Phoenix Group said it would be changing its name to Standard Life with the move taking place last month.
Standard Life was founded in Edinburgh in 1825. Phoenix Group bought the Standard Life Assurance business in 2018, then in 2021 it acquired the historic Standard Life brand after funds giant Standard Life Aberdeen opted to change its name to Abrdn - a name that has now reverted back to Aberdeen. Standard Life was last on the stock market following its 2006 demutualisation.
Susannah Streeter, chief investment strategist at Wealth Club, said Standard Life had ambitions to rival Aviva and Legal & General in size, and described the deal as a “big step forward”.
She noted: “The UK has an ageing population and big pension adequacy gap, with more than half of current savers expected to struggle financially unless they up contributions, which offers big opportunities ahead for Standard Life.
“Its own survey out earlier this week showed that a chunk of retirees are returning to the workforce because of financial difficulties. The expansion of auto-enrolment schemes could also offer access to greater numbers of employees.”
Brandan Holmes at Moody’s Ratings said: “Standard Life’s acquisition of Aegon UK is credit positive, propelling it to second place in the UK workplace pensions market. The combined entity will benefit from improved economies of scale, stronger distribution and access to large corporate mandates, while its enlarged member base presents compelling growth opportunities across the full retirement and savings lifecycle.”
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