This is likely to be achieved by savings and adding value and noted it was poised for a “step-change” in strengthening its capabilities and customer offering. It provided no further details on how the synergies would be achieved.

Unveiling a strong half-year, the pensions group, which rebranded from Phoenix Holdings in February, said it is poised for further growth through the acquisition of Aegon UK and a new pension risk transfer (PRT) partnership. It said it is on track to hit its current financial targets and cost savings, reports our sister title Daily Business.

On the Aegon deal, chief executive Andy Briggs said: “We expect to unlock around 800 million of net synergies, and increase our excess cash by around 400m over the next five years.

“That will give us even greater flexibility to invest in growth, or return capital, in the future…the funding structure is efficient and it enhances our capital strength.”

The Aegon deal, announced in April, will combine two of Edinburgh’s biggest employers. It will be funded through a combination of cash, debt and 181m new shares in Standard Life.

Newly issued shares to Aegon on completion will result in Aegon becoming a 15.3% shareholder in the enlarged group and appointing a non-executive director to the board.

Mr Briggs added: “We continue to make progress towards completion, which is expected around the end of 2026, subject to regulatory approvals. I look forward to welcoming Aegon UK colleagues into the Standard Life family at that point, and working together to capture the huge potential in front of us all.   

“With the Aegon UK acquisition we will become the largest player in the UK Pensions and Savings market, underpinned by a number two position in both Workplace and Retail,” said group chief executive Andy Briggs.

“What is unique to us is that we are big in both of these markets, which brings real synergistic benefits, whereas the other players are only big in one or the other.

“The additional annuities capacity from our PRT partnership, on top of Standard Life’s existing business, will move us to be a top three player in the Annuities market. We will remain disciplined in our approach, with a laser focus on value over volume. 

“These transformational developments mean that we will now be able to participate more fully in the ISAs and general investment accounts segment which accounts for one third of the Retail profit pool. We will also have access to the large schemes’ market segment, which is about half of the total UK PRT profit pool.”

Standard Life will be the largest long-term savings and retirement market player in the UK, with around £0.5 trillion of assets.  The number two player has around £300bn of assets.

“This scale supports greater commercial advantage and further operating leverage, given a high proportion of costs in our sector are fixed,” said Mr Briggs. “We will use our increased scale and expanded capabilities to advocate for better retirements and help our customers achieve better outcomes and greater financial security in later life.”

“The £2b acquisition of Aegon UK and our recently announced UK PRT partnership will further strengthen our capabilities and customer offering. Standard Life champions the belief that everyone’s journey to and through retirement can be better and we look to the future with confidence.

“We have also performed strongly across the Pension Risk Transfer and Individual Annuity markets,  delivering  new business premiums of £2.2bn during the first half of 2026. We wrote £1.6bn of PRT business reflecting our continued discipline in this competitive market, with a further £400m completed on at an exclusive stage, since the end of June, while we are actively quoting on a pipeline of about £7bn.

“In individual annuities, new premiums grew 8% year-on-year to £600m, through a combination of product innovation and rising consumer demand. Our continued expectation is to deploy up to around £200m of capital across PRT and Individual Annuities in 2026.”

Operating cash generation was up 6% year-on-year to £745m and total cash generation increased 15% to £900m.

The company’s IFRS adjusted operating profit rose 25% to £563m, and it achieved cumulative run-rate cost savings of £210m.

The interim dividend per share increased by 2.6% to 28.05 pence, and assets under administration grew 5% to £333bn.