Standard Life: Edinburgh financial giant ‘firmly on track’ after beating profit hopes
“2026 looks set to be significant for the pensions and long-term savings industry with a series of initiatives that have the potential to improve outcomes for savers” – Andy Briggs, CEO
Standard Life has reported forecast-beating full-year profits as it pointed to a strong performance from its core pensions and savings business.
The firm, which was founded in Edinburgh in 1825, also said its balance sheet strengthened during the year as it posted an adjusted operating profit of £945 million for 2025, on an International Financial Reporting Standards (IFRS) basis. That was up 15 per cent on the year before and ahead of market expectations for a profit of about £937m.
A final dividend per share of 28.05p was declared, making a total dividend pay-out for the year of 55.4p, up from 54p in 2024.
With regards to pensions and savings, the group said it was “uniquely positioned in attractive, growing markets”.
Workplace net inflows of £5.3 billion matched the prior year’s total. New workplace members were up 14 per cent in 2025 to some 247,000, while total workplace customers topped three million.
On the retirement solutions front, some £1.2bn of individual annuity premiums were written in 2025, up from £1bn in 2024, and market share increased to 15 per cent.
Chief executive Andy Briggs said: “Our results demonstrate strong progress delivering on our strategic priorities. 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.
“We are firmly on track to deliver our 2026 financial targets, building momentum by continuing to sharpen our competitive position in one of the world’s most attractive savings and retirement markets.
“Operating as Standard Life plc brings our most trusted brand to the forefront, demonstrating our commitment to helping our customers achieve better outcomes and greater financial security in later life.”
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Last September, Phoenix Group said it would be changing its name to Standard Life with the move taking place last month.
Standard Life was founded in Edinburgh in 1825. Phoenix Group bought the Standard Life Assurance business in 2018, then in 2021 it acquired the historic Standard Life brand after funds giant Standard Life Aberdeen opted to change its name to Abrdn - a name that has now reverted back to Aberdeen. Standard Life was last on the stock market following its 2006 demutualisation.
Briggs added: “2026 looks set to be significant for the pensions and long-term savings industry with a series of initiatives that have the potential to improve outcomes for savers.
“The Pension Schemes Bill will lay the foundations for a move to fewer, larger workplace schemes and creates the potential for greater value for money. There are also steps to introduce more standardised retirement income solutions for those who want a ready-made option.
“We are expecting an interim report from the Pension Commission in the coming months which will set out the challenge society collectively needs to address under-saving. This is a once in a generation opportunity to ensure we tackle current levels of under-saving and help people to engage with their financial futures.”
In March 2024, the group set out a three-year strategy with a vision to become “the UK’s leading retirement savings and income business”. It said progress towards fulfilling that vision would be focused on the strategic priorities of “grow, optimise and enhance”.
In its latest update, the group noted: “To grow we need to have a full suite of products which meet the needs of our customers, and build out our ability to engage with them. Having broadened our range of products in the market over recent years, including the launch of the Standard Life Guaranteed Lifetime Income plan, we now have a full product suite to support customers across all stages of their retirement journey.
“There is always more to do as we continue to innovate and adapt to changing customer needs, behaviours and market trends, but this phase is now largely complete and sets us up well for the future.”
The firm said that it expects annual market flows of around £80bn in the pensions and savings market, and intends to consolidate its position as a top-three provider. Some £1bn of wins have been secured for 2026 to date with a medium-term opportunity pipeline of more than £10bn flagged.
Briggs said: “Our workplace business continued its strong momentum in 2025, delivering net fund flows of £5.3bn. This is a structurally growing market, and the investment we’ve made in our offer in recent years is paying off.
“New business and retention remained strong, and our total workplace customer base reached three million for the first time.
“Individual annuity sales also grew for the third consecutive year since re-entering the market, supported by customer demand for income certainty and attractive rates. We wrote £1.2bn of premiums and increased our market share to 15 per cent.
“In our pension risk transfer business, we completed £3.9bn of transactions, including the largest deal in our history at £1.9bn. The performance reflects the continued confidence from trustees and sponsors in our employer proposition, excellent member experience, and competitive pricing.
“This year has started well with an additional £1.6bn of transactions completed or at an exclusive stage.”
The group said it was “firmly on track” to deliver on all of its 2026 financial targets while supporting its “progressive and sustainable” dividend policy and creating financial flexibility. It expects to deliver about £500m of excess cash in 2026.
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