Standard Life Investment Case
Standard Life is a retirement specialist focused entirely on retirement savings and income, and we champion the belief that everyone’s journey to and through retirement can be better. Our purpose, helping people secure a life of possibilities, demonstrates our commitment to helping customers while delivering better outcomes for all our stakeholders. We’re on an exciting journey and are executing against our strategy to achieve our vision to be the UK’s leading retirement savings and income business and with this momentum, it’s an excellent time to invest and be part of our growth story.
Why invest in Standard Life?
Our scale, trusted brand, and market-leading propositions uniquely position us to capture momentum in the large and structurally growing markets we operate in. Our focus is on supporting our 12m customers across all stages of their retirement journey through our full suite of products. We’re continuing to invest in our already strong operating model, and our strategic execution is delivering attractive financial outcomes. Our improving balance sheet is creating significant value and compelling total return potential, in the form of a secure, growing dividend and annual excess cash generation of over £400m.
Compelling strategic opportunity
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Large and growing market
- Market size of £3.6tn1 with annual flows of c.£270-300bn2 across the UK retirement savings and income markets
- Market is expected to increase to £6.1tn by 20341
- Only c.10% of people access and pay for independent financial advice3
- Additional political, regulatory and economic tailwinds
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Uniquely positioned to capture momentum
- 1-in-5 UK adults already customers of Standard Life plc
- Leading workplace and annuity propositions, with respective top-3 and top-5 UK market positions. Ambitions to be top-5 in Retail
- Full product suite to support all stages of retirement savings and income journey
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Strong operating model we continue to invest in
- Scale cost and capital efficiencies relative to peers
- Unique asset management model delivering stronger returns for customers and shareholders
- Leveraging technology to drive efficiencies and best-in-class customer outcomes
Attractive financial outcomes of our 3-year strategy across 2024-2026
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Cash
5% YoY growth in Operating Cash Generation to £1.5bn in 2025, growing at mid-single digit % p.a going forwards delivers excess cash creating financial flexibility.
Over £400m of excess cash generated after dividend payments of c.£550m.
Capital
Resilient and efficient capital position, supports investment across our strategic priorities.
Shareholder Capital Coverage Ratio improved to 176% in 2025, in upper half of 140-180% operating range. Commitment and capacity to de-lever to c.30% Solvency II leverage ratio by end-2026.
Earnings
Strong operational performance and executing on our cost savings programme is delivering a more efficient operating model and enhanced profitability.
IFRS adjusted operating profit +15% YoY to £945m in 2025, on track for c.£1.1bn target by end-2026.
Firmly on track to deliver our 2026 targets
Significant value creation
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1 Company analysis of market data and industry forecasts, 2024 LCP Pension Risk Transfer report, NMG, The 2024 Purple Book, publicly available financial disclosures, and FY24 and HY25 financial disclosures.
2 Company estimate based on NMG market model (2024) and 2025 LCP Pension Risk Transfer report, NMG market model (2024) data, and internal estimates based on publicly available information.
3 https://library.standardlife.co.uk/What-role-could-targeted-support-play-in-supporting-consumers-in-retirement.pdf
