Standard Life reported operating cash generation of £745 million for the first half of 2026, an increase of 6% year over year, while total cash generation increased 15% to £900 million.
IFRS adjusted operating profit increased 25% to £563 million from £451 million in the prior-year period. The company reported an IFRS loss after tax of £179 million compared with a £156 million loss a year earlier.
Assets under administration increased 5% from year-end 2025 to £333 billion. Standard Life also increased its interim dividend by 2.6% to 28.05 pence per share.
The company’s shareholder capital coverage ratio was 169%, while its estimated Solvency II surplus stood at £3.2 billion. The Solvency II leverage ratio declined to 29% from 33% at the end of 2025.
Within Pensions and Savings, adjusted operating profit increased 36% to £244 million, while average AUA increased 10% to £217 billion. Operating cash generation increased 23% to £203 million.
Retirement Solutions generated adjusted operating profit of £324 million, up 13%, and operating cash generation of £466 million, up 5%. Average AUA in the segment increased 6% to £42 billion.
Standard Life is also pursuing two major strategic transactions designed to expand its position in the UK retirement market.
The company agreed in April to acquire Aegon UK for approximately £2 billion. The consideration was structured as 181 million Standard Life shares and £750 million in cash as of the announcement date. Standard Life expects the transaction to establish it as the largest player in the UK Pensions and Savings market on a pro forma basis. Completion remains targeted for around the end of 2026, subject to regulatory approvals.
Standard Life has also announced a pension risk transfer partnership with CVC Capital Partners and Prudential Financial, alongside Goldman Sachs, MS&AD Insurance Group, and other institutional investors.
The partnership is expected to have up to £2 billion of initial combined capital. Standard Life will have operational control and a 25% economic interest, contributing £500 million over five years. The company expects the structure to add approximately £5 billion to £7 billion of annual PRT volume capacity and enable it to pursue pension schemes exceeding £2 billion in size.
The partnership is expected to launch during the first half of 2027, subject to regulatory approval.
KEY QUOTES:
“Standard Life continues to demonstrate exciting momentum against our vision to be the UK’s leading retirement savings and income business. Our strong half year results reflect how we are helping more customers achieve better outcomes and we remain on track to deliver our end-2026 financial targets, while our profitable growth and strong cash generation is increasing our financial flexibility. The £2 billion acquisition of Aegon UK and our recently announced UK PRT partnership will further strengthen our capabilities and customer offering. Standard Life champions the belief that everyone’s journey to and through retirement can be better and we look to the future with confidence.”
Andy Briggs, Group Chief Executive Officer of Standard Life
