The decision was revealed in its full-year numbers, with the firm saying the disposal of the 'capital intensive' insurance arm will make it more nimble. Standard Life Aberdeen will retain its platforms and advice arm, 1825, which currently sit within the insurance division.
This transaction represents excellent value for our shareholders, including a comprehensive and mutually beneficial strategic relationship entered into with Phoenix Group, a longstanding partner of the firm.Gerry Grimstone, Chair, Standard Life Aberdeen
Standard Life Aberdeen chair Gerry Grimstone: 'In addition, I am particularly pleased to note Phoenix Group's commitment to maintain operational headquarters in Edinburgh.'
The total value of the deal is £3.24 billion, the bulk of which will be made up of cash. Standard Life Aberdeen will also take a 19.99% stake in Phoenix worth around £1 billion, forming a strategic partnership between the pair. The alliance will see the firm's investment division, Aberdeen Standard Investments, take on the running of around £158 billion of Phoenix's assets under management.
Phoenix CEO Clive Bannister said: 'The reinforced strategic partnership with Standard Life Aberdeen allows both companies to focus on their key strategic strengths whilst generating future value through the new client service and proposition agreement...'