Aegon has agreed to sell Aegon UK to Standard Life plc in a transaction valued at a total consideration of £2.0 billion, marking a major step in its strategic shift towards becoming a focused US life insurance and retirement group.
The deal comprises a 15.3% shareholding in Standard Life, equivalent to 181.1 million shares, alongside £0.75bn in cash. Any remittances taken from Aegon UK between signing and completion will be deducted from the cash portion.
The total consideration is equivalent to 14.2 times Aegon UK’s 2025 operating result after tax and 1.9 times its 2025 IFRS shareholder equity.
The proceeds from the transaction, after adjustments, are expected to be used for a combination of deleveraging and share buybacks once the deal completes. Aegon highlighted its financial ambitions for 2026 and 2027 will be updated following the divestment, while maintaining previously communicated growth targets from a revised base.
“The stake would make Aegon the British insurer’s largest single shareholder, according to LSEG data, with the Amsterdam-listed group also entitled to appoint one non-executive director to Standard Life’s board,” according to Mike Barrington, senior associate at Charles Russell Speechlys in a statement issued to Insurance Business.
Barrington noted that Aegon's sale is the latest sign that consolidation and scale are reshaping the British insurance market. As a result of the deal, Standard Life is expected to move its business more towards managing customer assets and become one of the largest retail pensions and savings platforms in the UK. He added that the deal also raises broader questions about the long-term commitment of overseas groups to the UK sector, given Aegon plans to move its headquarters to the United States by 2028.
Aegon’s asset management operations in the UK will remain part of its global asset management business and continue as an investment partner to the combined group. The company will also retain a governance link through a relationship agreement allowing it to appoint one non-executive director to Standard Life’s board.
Completion of the transaction is expected around the end of 2026, subject to regulatory approvals and other customary conditions.
“The terms reflect our commitment to creating value for shareholders, and through our shareholding we will benefit from further value creation in the combined business,” said Aegon chief executive Lard Friese. “Standard Life is the right owner for Aegon UK and a good home for our employees: we share the same values and a strong commitment to customers, and together the businesses will create the UK’s largest retirement savings and income provider.”
Standard Life chief executive Andy Briggs said: “With financial wellbeing at the heart of everything it does, Aegon UK’s values and culture are aligned with our own. Together, we will not only be stronger, we will be better – helping our customers achieve better outcomes and greater financial security in later life. I look forward to welcoming everyone in Aegon UK to Standard Life in due course and working together to capture the huge potential in front of us.”
The companies said the cash component, net of expected remittances, will support deleveraging and share buybacks after completion. Aegon also said the transaction is expected to have mixed financial effects, including a reduction in group solvency ratio and changes to shareholder equity metrics, alongside a positive impact on net result.
Under accounting changes, Aegon UK will no longer contribute to group operating result and operating capital generation before completion and will be reported under “Other income/(charges)”.
Following completion, Aegon will enter a lock-up period for the shares received, lasting until the earlier of 18 months after closing or completion of Aegon Ltd’s redomiciliation to the United States.
