Standard Life has agreed to acquire Aegon UK, creating a pensions and savings group with 16 million customers and £480bn (€552bn) of assets under administration.
Aegon put its UK business up for sale last year, as part of a wider restructuring that will result in its headquarters moving to the US and rebranding as Transamerica, a provider of life insurance, retirement, and investment solutions in the US.
Standard Life will be purchasing the UK business for a total consideration of £2bn. This will comprise £750m in cash and £191.1m in new shares to Aegon.
In addition, Aegon UK, which employs 2,000 staff, will become the largest shareholder in Standard Life with a 15.3% stake and will be entitled to appoint one non-executive director to the group’s board.
The acquisition will add £160bn of assets under administration and 3.8 million customers to Standard Life, creating an enlarged group with approximately £480bn of assets under administration and 16 million customers, establishing Standard Life as the UK’s largest retirement savings and income business.
It establishes Standard Life as the UK’s second largest workplace pensions platform by assets, adding £74bn assets under administration and 2.1 million customers to its existing £71bn workplace offering.
The deal boosts its end-to-end defined contribution (DC) proposition, strengthening accumulation and at retirement offerings alongside technology-enabled administration and customer service.
The enlarged platform is expected to generate £18bn of pro-forma gross annual flows for the year ending 31 December 2025, with expanded reach across corporate advisers and adviser-led employers.
In March, Phoenix Group completed its name change to Standard Life. The move to Standard Life supports the organic growth strategy of the pensions and savings and retirement solutions businesses that already trade under the Standard Life brand.
Since Phoenix Group bought the brand, it has built leading positions in a number of markets, including workplace pensions, individual annuities and pension risk transfer.
Andy Briggs, group chief executive officer 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. 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.”
Briggs added that the transaction “accelerates” the shift to capital-light while strengthening its cash, capital and earnings position to create increased value for shareholders.
He continued: “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, Aegon CEO, added: “Standard Life is the right owner for Aegon UK and a good home for our employees: 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.
“Aegon’s asset management business in the UK will remain an important asset management partner to the new combined business.”
The transaction is expected to close around the end of 2026, subject to regulatory approvals.
