Key facts
- Standard Life reported a £179 million loss in the first half of the year.
- The loss was attributed to £473 million in paper losses on hedging strategies.
- Adjusted profit increased by 25% to £563 million.
- Operating cash generation rose by 6% to £745 million.
- Assets under administration grew to £333 billion.
- The company acquired Aegon UK for £2 billion.
Standard Life reported a £179 million loss for the first half of the year, a result of £473 million in paper losses on financial protection contracts. These contracts, designed to shield the company from market downturns, lost value as stock markets rose, forcing the group to record the decline under strict accounting rules. This hedging strategy is intended to protect cash flow and capital.
Despite the headline loss, the company's adjusted profit increased by 25% to £563 million, with operating cash generation up 6% to £745 million, putting it on track for mid-single-digit annual growth. Standard Life is also pursuing a £250 million cost-cutting initiative, having already achieved £210 million with the help of artificial intelligence.
Assets under administration grew 5% to £333 billion, and the interim dividend was raised by 2.6% to 28.05p per share. The company also completed its debt paydown program early, expecting to generate £500 million in excess cash in 2026. In acquisitions, Standard Life agreed to buy Aegon UK for £2 billion, aiming to create a major player in the UK retirement savings sector. Additionally, the firm partnered with CVC and Goldman Sachs to accelerate its push into the pension risk transfer market.