Standard Life eyes further growth as lifts dividend amid higher profit

(Alliance News) - Standard Life PLC on Monday said it is on course to meet 2026 targets after reporting slightly better than forecast adjusted operating profit.

The Edinburgh-based insurance, savings and retirement products firm, formerly called Phoenix Group Holdings PLC, said the pretax loss attributable to owners narrowed to GBP432 million in 2025 from GBP1.45 billion in 2024.

IFRS adjusted operating profit rose 15% to GBP945 million from GBP825 million, ahead of GBP937 million consensus.

Total cash generation fell 3.8% to GBP1.71 billion from GBP1.78 billion. Operating cash generation climbed 5.1% to GBP1.47 billion from GBP1.40 billion, in line with consensus.

Group contractual service margin tax grew 17% to GBP3.81 billion from GBP3.26 billion, ahead of GBP3.6 billion consensus.

The firm raised its final dividend by 2.6% to 28.05 pence per share from 27.35p, giving a total dividend for the year of 55.40p, up 2.6% from 54.00p.

Standard Life said average assets under administration rose 6.8% to GBP204.6 billion from GBP191.5 billion.

The solvency II was 176%, above consensus of 169%, and 172% a year ago. The solvency 11 leverage ratio declined to 33% from 36%.

Workplace net inflows were flat at GBP5.3 billion. Retail net outflows improved to GBP7.8 billion from GBP8.6 billion reflecting retail strategy "green shoots".

Chief Executive Officer Andy Briggs said: "Further profitable growth and a strengthened solvency balance sheet have supported increased shareholder returns and greater financial flexibility for the future, underpinned by the significant and growing levels of excess cash our business generates."

Looking ahead, the company said it is on track to deliver all 2026 financial targets. It expects to deliver around GBP500 million of excess cash in the year.

Further, Standard Life expects mid-single digit percentage growth in operating cash generation, with GBP1.1 billion of adjusted operating profit.

Standard Life noted that 2026 will be its final year of using excess cash to de-lever. After 2026, excess cash will be deployed to the "highest returning opportunities".

CEO Briggs said Standard Life is "firmly on track to deliver our 2026 financial targets."

Shares in Standard Life fell 0.2% to 689.50 pence each in London on Monday morning. The wider FTSE 100 was up 0.1%.

By Jeremy Cutler, Alliance News reporter

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