Phoenix Group and Standard Life Aberdeen (SLA) have entered into a new binding agreement designed to simplify their existing strategic partnership and enable Phoenix to control its own distribution, marketing and brands.
At the same time SLA became a leading shareholder in Phoenix and today has a strategic shareholding of around 14%.
This announcement follows the acquisition of Standard Life Assurance Limited from SLA in 2018.
Under the terms of the new transaction, Phoenix will sell its SLAL UK investment and platform-related products and acquire ownership of the Standard Life brand.
As a result, the Client Service and Proposition Agreement entered into between the two groups will be dissolved.
At the same time, Phoenix is reinforcing its Strategic Partnership with SLA by re-committing to a 10-year strategic asset management partnership.
Ownership of the Standard Life brand is seen as a key enabler for delivering Phoenix’s Workplace and Customer Savings and Investments growth strategies at pace.
Through this transaction, Phoenix will receive £115 million of cash consideration, ownership of the Standard Life brand, and Phoenix and SLA will resolve all legacy issues in relation to the Transitional Services Agreement entered into in connection with the acquisition and the CSPA.
Andy Briggs, CEO of Phoenix Group, commented, “This agreement is a natural progression of our strong Strategic Partnership with SLA and significantly simplifies our relationship.
‘I am delighted that Phoenix now owns all of the Life and Pensions business of Standard Life, including the brand and all distribution and marketing, and we are committed to investing in this business.
“This will enable Phoenix to accelerate the delivery of a broader set of product and service propositions to meet the financial needs of our customers as they journey to and through retirement.
“This is therefore a key enabler of our Open business growth strategy and will support the delivery of incremental new business long-term cash generation.”