Aegon, the parent company of World Financial Group, announced plans to sell Aegon UK to Standard Life plc for approximately $2.7 billion, which is constructed of approximately $1 billion in cash and a shareholding of 15.3%, or 181.1 million shares.
Aegon described the transaction as “further supporting Aegon in its ambition to become a leading US life insurance and retirement group.” Aegon’s asset management activities in the UK will remain part of Aegon’s global asset manager, and the relationship agreement with Standard Life entitles Aegon to appoint one non-Executive Director on Standard Life’s board of directors.
“The transaction represents an important step in our ambition to become a leading US life insurance and retirement group,” said Lard Friese, Aegon CEO. “The terms reflect our commitment to creating value for shareholders, and through our shareholding we will benefit from further value creation in the combined business. 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 at the end of 2026, subject to regulatory approval. Cash received from the transaction is expected to be used for deleveraging and share buy-backs once completed. In the wake of the sale, Aegon stated that its free cash flow run rate is expected to increase at around 5% per annum between 2025 and 2027. Dividend per share is expected to grow in excess of 5% per annum, which remains unchanged from the CMD 2025 guidance.
“With financial wellbeing at the heart of everything it does, Aegon UK’s values and culture are aligned with our own,” said Andy Briggs, Standard Life CEO. “Together, we will not only be stronger, we will be better – helping our customers achieve better outcomes and greater financial security in later life. I look forward to welcoming everyone in Aegon UK to Standard Life in due course and working together to capture the huge potential in front of us.”
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