- Transaction marks the completion of the strategic review of Aegon UK, further supporting Aegon in its ambition to become a leading US life insurance and retirement group
- The proceeds are valued at GBP 2.0 billion and consist of a shareholding of 15.3% (181.1 million shares) in Standard Life plc (Standard Life)1 and a cash amount of GBP 0.75 billion. Any remittances taken out of Aegon UK between the signing and closing of the transaction will be deducted from the GBP 0.75 billion cash amount
- Total consideration equivalent to 14.2x 2025 operating result after tax and 1.9x 2025 IFRS Shareholder’s equity2
- The cash received from the transaction, minus the value of the remittances that were expected to be received from Aegon UK between the signing and the closing of the transaction, is expected to be used for a combination of deleveraging and share buybacks, once the transaction is completed
- Aegon’s group financial ambitions for 2026 and 2027, as communicated at its Capital Markets Day 2025, will be updated to reflect the transaction announced today, with target growth rates unchanged but starting from an adjusted base level
- Aegon’s asset management activities in the UK will remain part of Aegon’s global asset manager and will be an important asset management partner for the new combined business
- The transaction is expected to close around the end of 2026, subject to customary conditions, including regulatory approvals
- The relationship agreement with Standard Life entitles Aegon to appoint one non-Executive Director on the Board of Standard Life.
Lard Friese, Aegon CEO, commented: “The transaction represents an important step in our ambition to become a leading US life insurance and retirement group. 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. 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. Aegon’s asset management business in the UK will remain an important asset management partner to the new combined business.”
Andy Briggs, Standard Life CEO, 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.”
Use of proceeds and financial implications
The cash received from the transaction, minus the value of remittances that were expected to be received from Aegon UK between the signing and the closing of the transaction, is expected to be used for a combination of deleveraging and share buy-backs, once the transaction is completed.
Following the completion of the transaction, Aegon’s group financial guidance for 2026 and 2027 will be updated to reflect the divestment of Aegon UK:
- The group operating result run-rate is expected to grow by around 5% per annum between 2025 and 2027, from a proforma 2025 run-rate of EUR 1.3 – 1.5 billion*
- OCG after holding funding and operating expenses is expected to grow between 0% and 5% per annum over the same timeframe, from a proforma 2025 run-rate of EUR 0.7-0.75 billion*
- Free cash flow run rate is expected to increase at around 5% per annum between 2025 and 2027. The free cash flow run-rate will be adjusted by removing the UK contribution (EUR 120 million in 2025 terms) from 2026 onwards and incorporating the free cash flow attributable to the equity stake received as part of the disposal structure post-closing
- Dividend per share is expected to grow in excess of 5% per annum, which remains unchanged from the CMD 2025 guidance
*The proforma 2025 run-rate figures reflect the run-rate communicated at the CMD 2025, updated to reflect the Aegon UK transaction announced today.
On a pro‑forma 2025 basis, and prior to any deleveraging or share buyback initiatives, the transaction is expected to result in a 5%‑point reduction in the Group Solvency ratio. At the same time, it is expected to have a positive impact of EUR 1.1 billion on Group shareholders’ equity and a negative impact of EUR 0.1 billion on Group Valuation Equity, as the loss of CSM exceeds the positive shareholders’ equity effect. The positive impact on the Group’s net result is expected to be EUR 0.6 billion.
As per Aegon’s accounting policies and until the completion of the transaction, Aegon UK will no longer contribute to the Group Operating result and Operating Capital Generation, and its IFRS result will be reported under “Other income/(charges)”.
The transaction is expected to close around the end of 2026, subject to customary conditions, including regulatory approvals. Following the completion of the transaction, Aegon will enter into a lock-up period with respect to the shares received as part of the transaction. This period will last until the earliest of 18 months following the transaction completion date or the completion of the redomiciliation of Aegon Ltd to the United States.
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1. Value of 15.3% stake is based on the closing price of Standard Life’s shares on Tuesday April 14, 2026, and 181,080,690 shares to be received by Aegon upon closing of the transaction as per the agreement.
2. Based on the following 2025 figures for Aegon UK: operating result after tax of GBP 143 million and shareholders equity of GBP 1,077 million.