Standard Life plc (LSE:SDLF) reported a 25% increase in IFRS adjusted operating profit to £563 million for the first half of 2026, alongside higher cash generation and assets under administration.
Operating cash generation increased 6% to £745 million, while total cash generation rose 15% to £900 million. Assets under administration increased 5% to £333 billion.
The company also reported improved margins in its pensions business and cumulative run-rate cost savings of £210 million. Standard Life said these results leave the group on track to meet its 2026 financial targets.
The group nevertheless recorded an IFRS loss after tax during the period and reported a reduction in its Solvency II surplus.
Standard Life is also pursuing a proposed £2 billion acquisition of Aegon UK. The company said the transaction would make it the largest participant in the UK pensions and savings market on a pro forma basis.
Separately, Standard Life has established a new partnership to expand its UK pension risk transfer operations, with up to £2 billion of initial capital available. The arrangement is intended to increase its capacity to participate in larger pension scheme de-risking transactions.
The company expects the Aegon UK transaction to increase its fee-based earnings, while the pension risk transfer partnership is designed to expand its Retirement Solutions capacity.
Standard Life expects excess cash generation to increase after 2026, with capital available for potential growth opportunities and shareholder returns.
More about Standard Life plc
Standard Life plc (LSE:SDLF) is a UK retirement savings and income provider with £333 billion of assets under administration.
The group operates fee-based Pensions and Savings businesses alongside its capital-utilising Retirement Solutions operation. Its activities include workplace and retail pensions, savings and annuity products, as well as pension risk transfer transactions involving defined benefit schemes.
Standard Life’s strategy includes cost reductions, balance sheet management and investment in its pensions and retirement businesses.
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