Half Year 2023 Business Highlights:
- Workplace and Bulk Purchase Annuity (BPA) businesses perform strongly with, year on year, new business long-term cash more than doubling to £885m, comprising £665m from our Retirement Solutions business (HY22: £282m) and £220m from our capital-light fee-based businesses (HY22: £148m)
- £1.8bn of Workplace net fund flows (HY22: £1.7bn) and 64% increase in incremental new business long-term cash generation to £184m (HY22: £112m), as we retain our existing clients and benefit from new joiners to existing schemes and increased member contributions
- Workplace business is currently quoting on a significant pipeline of new schemes
- £3.2bn of Bulk Purchase Annuity (BPA) premiums (HY22: £1.6bn) contracted, contributing to `strong year-on-year growth in new business cash
- Built in opportunity for the Standard life brand to support the 1-in-5 UK adults, who are already Phoenix Group customers, with retail retirement solutions
- Increased demand from customers for greater certainty in retirement led to development and launch of our first open market individual annuity in September 2023
Commenting on the results, Standard Life CEO, Andy Curran, said: “Standard Life has performed strongly this year, building on momentum created in 2022 and capitalising on the strength of our brand and propositions in our chosen markets.
“Solid growth across our Workplace pensions business in the first six months of the year reflects our ongoing investment with us winning more of the bigger schemes in the market. We have also attracted around £3bn of new scheme assets that are due to transfer to us over the next two years, while we are also quoting on a significant pipeline of new schemes.
“Our Retirement Solutions business is also experiencing similar momentum with £3.2bn of BPA premiums contracted in the first half of 2023. We are winning more schemes on a selective participation basis while maintaining a balanced business mix in a competitive marketplace. This ability to support both modern auto-enrolment schemes and de-risking of older style defined benefit pension as well as the wider retail savings market means we are aligned to a number of huge growth markets and this strategy continues to drive strong year-on-year growth in new business cash.
“The challenges posed by the cost-of-living crisis means customers are increasingly seeking greater certainty as they plan for their future. We have taken a number of significant steps to help them, launching our first open market individual annuity to meet this need and rolling out Money Mindset, our financial wellness digital coaching tool that helps customers better understand and manage their finances. However, the current environment puts the financial needs of people in sharp focus and more needs to be done in the UK to provide support for all to help them make more sense of their finances and give them more personal information and support.”
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About Standard Life
Standard Life is a brand that has been trusted to look after peoples’ life savings for nearly 200 years
Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We’re proud to be building on nearly 200 years of Standard Life heritage together
Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future. We’re proud to offer a leading range of sustainable and responsible investment options.
The value of investments can go down as well as up and may be worth less than originally invested.We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs and plan a future they feel confident about.