Standard Life plc agreed to acquire insurance and pensions group Aegon UK plc for £2bn, in a deal set to create the UK’s largest retirement savings and income business.
The transaction will be funded through debt, cash, and the issue of new ordinary shares in Standard Life.
Cash consideration will total £750 mn. Standard Life plans to fund this through £650 mn of debt issuance before completion, alongside existing cash resources.
Aegon will receive 181.1 mn new shares in Standard Life, equal to 15.3% of the enlarged group’s share capital.
The combined business will serve 16mn customers and oversee £480 bn in assets under administration.
Andy Briggs, group chief executive of Standard Life, said the agreement sharply advances the company’s plan to become the UK’s leading retirement savings and income provider.
He said the enlarged group will be better placed to meet changing customer needs through stronger digital, advice, and distribution capabilities across workplace and retail channels, in one of the world’s most attractive markets.
Our agreement to acquire Aegon UK significantly accelerates our vision to be the UK’s leading retirement savings and income business
Andy Briggs, group CEO of Standard Life
“We will be in an even stronger position to meet the evolving needs of our 16m customers with enhanced digital, advice and distribution capabilities across workplace and retail, strengthening our standing in one of the world’s most attractive markets,” said Andy Briggs.
Transaction elevates Standard Life to #2 player in growing UK market
- Establishes Standard Life as the UK’s second largest workplace pensions platform by assets; adding £74 bn AUA and 2.1 m customers to the existing £71 bn Workplace offering.
- Strengthens the proposition through innovative accumulation and at retirement offerings, supporting employers and members across the full savings lifecycle.
- Enhances customer service through technology enabled administration and telephony, underpinned by a shared focus on customer excellence and consistent outcomes.
- Expands administration and distribution capabilities through increased reach across corporate advisers and adviser-led employer segments, a structurally growing part of the UK Defined Contribution market.
- Improves end to end workplace outcomes by linking savings, engagement and service more effectively with downstream retail consolidation and decumulation pathways.
- £18bn pro-forma gross annual flows for year ending 31 December 2025.
Briggs said the deal also speeds up Standard Life’s shift toward a capital-light model, while improving its cash, capital, and earnings position for shareholders.
Furthermore, the transaction accelerates our shift to capital-light whilst strengthening our cash, capital and earnings position to create increased value for shareholders.
He added Aegon UK’s values and culture match Standard Life’s own, with financial wellbeing central to both businesses. He said the combined group will aim to deliver stronger customer outcomes and greater financial security in later life. Briggs also said he looks forward to bringing Aegon UK staff into Standard Life and working together on the growth opportunity ahead.
Aegon chief executive Lard Friese said Standard Life is the right owner for Aegon UK. He said both groups share similar values and a strong commitment to customers, and the combination will create the UK’s largest retirement savings and income provider.
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.
Lard Friese, Aegon CEO
Friese said the two businesses fit well together and the deal offers a strong outcome for Aegon UK customers and employees. He added Aegon’s shareholding in the enlarged group gives it exposure to future upside.
“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.”
The transaction remains subject to regulatory conditions and is expected to complete around the end of 2026.
Standard Life also said its strategic shareholders, MS&AD Insurance Group Holdings, Inc and Aberdeen Group Plc, support the strategy and remain committed to their holdings.
