Standard Life is a life assurance, pensions and long-terms savings company in the UK which is owned by Phoenix Group.[1][2]
 | |
| Company type | Public limited company |
|---|---|
| Industry | Financial services |
| Founded | 1825 |
| Headquarters | Edinburgh, Scotland, UK |
Number of employees | 6,431 (2015)  |
| Parent | Phoenix Group |
History
edit1825–2010
edit| Standard Life Assurance Company's Act 1925 | |
|---|---|
| Act of Parliament | |
| Long title | An Act to re-incorporate the Standard Life Assurance Company to provide for the control and management of the Company as a mutual company and for the conversion of its share capital into perpetual stock to confer further powers on the Company to repeal existing Acts and for other purposes. |
| Citation | 15 & 16 Geo. 5. c. xlii |
| Dates | |
| Royal assent | 31 July 1925 |
| Other legislation | |
| Repealed by | Standard Life Assurance Company Act 1991 |
Status: Repealed | |
The Standard Life Assurance Company was established in 1825 and reincorporated as a mutual assurance company in 1925.[3] During the 19th century it opened offices in Canada, India, China and Uruguay.[3]
In 2006 demutualisation took place and the company was floated on the London Stock Exchange.[4] The company sold Standard Life Bank plc to Barclays plc in January 2010[5] and then acquired the remaining 75 per cent stake in Threesixty, a financial advisory support business, that it did not already own for an undisclosed sum in March 2010.[6] It sold its healthcare division to Discovery Holdings, a South African business, in May 2010[7] and went on to buy Focus Solutions Group, a financial software company, for £42m in December 2010.[8]
In January 2006, Standard Life were accused of smearing a policy-holder, Michael Hogan, who was not happy with the way the company was being run. An e-mail sent to Standard Life executives and advisors (which was disclosed under the Data Protection Act) revealed an attempt to discredit him.[9]
2011–2015
editIn February 2013, the company acquired the private client division of Newton Management Limited, a UK wealth management unit of BNY Mellon, in a deal worth up to £83.5 million.[10] In March 2014, it was announced that Standard Life was in advanced talks to purchase rival Phoenix Group Holdings' Ignis Asset Management for around £400 million.[11] Towards the end of the month, Standard Life completed the acquisition for a fee of £390 million.[12]
In September 2014, Standard Life agreed to sell its Canadian operations to The Manufacturers Life Insurance Company, a subsidiary of Manulife Financial Corporation.[13] It completed this sale on 30 January 2015 for a cash consideration of C$4.0bn. The transaction included a Global Collaboration Agreement where Manulife will seek to distribute Standard Life Investments' funds in Canada, the US and Asia.[14] In a round-up of 2014 business, pre-tax profits rose by 19% to £604m, fee-based revenue during the year grew 14% to 1.43bn, and over 340,000 auto-enrolment customers were added. The pay and bonus of Chief Executive, David Nish, rose by 23% to almost £5.5m.[15]
In February 2015, Standard Life announced it was launching a wholly-owned, UK financial advice business.[16] In doing so, it confirmed that it had entered into an agreement with Skipton Building Society to purchase Pearson Jones,[17] a firm of financial advisers and paraplanners, and this acquisition was completed in May 2015 when the name of its new financial advice business was announced as "1825" – a reference to the year Standard Life was founded.[18]
2016–2017
editIn July 2016, a property investment fund managed by Standard Life Investments froze withdrawals after experiencing liquidity issues.[19][20]
In March 2017, Standard Life reached an agreement to merge with Aberdeen Asset Management, in an all-share merger, subject to shareholder approval.[21] It was announced that the merged company was to be named Standard Life Aberdeen.[22] This was achieved by Standard Life being renamed Standard Life Aberdeen on 14 August 2017.[23]
2018 - 2021
editIn 2018, Phoenix Group Holdings plc acquired Standard Life from Standard Life Aberdeen plc for £2.9 billion.[24]
In May 2021, Phoenix Group acquired the 'Standard Life' brand [25] and in July 2021 Aberdeen Standard Life Group companies rebranded as ‘abrdn’.[26]
Controversy
editIn January 2007, the head of Standard Life's life and pensions business, Trevor Matthews, used the racist phrase "nigger in the woodpile" while giving a presentation at one of the company's Edinburgh offices. After issuing an apology, Mr Matthews remained in his job and no disciplinary action was taken.[27]
In March 2007 the company announced it would cut 1,000 jobs in an attempt to save an additional £100 million per year in costs.[28] One month later it was highlighted in the company's annual report that three of Standard Life's top executives (Sandy Crombie, Keith Skeoch and Trevor Matthews) were awarded more than £5 million in pay.[29] A Standard Life spokesman defended the awards, citing the leadership's efforts in turning around the company's fortunes.[29]
In February 2014, Standard Life announced that it may move parts of their operations outside Scotland in the event of Scottish independence, if it was necessary to do so.[30]
See also
editReferences
edit- ^ "Standard Life history: One of the first Empire builders". www.scotsman.com. Retrieved 27 October 2021.
- ^ "Phoenix brings in Aegon investment head to manage Standard Life brand". Corporate Adviser. 23 February 2021. Retrieved 19 October 2021.
- ^ a b Standard Life history: One of the first Empire builders The Scotsman, 2 September 2010
- ^ Standard Life policyholders rush to cash in on flotation The Guardian, 24 September 2006
- ^ Barclays buys Standard Life Bank for £226m Daily Telegraph, 26 October 2009
- ^ Standard Life takes full control of Threesixty The Scotsman, 15 March 2010
- ^ Standard Life sells healthcare division BBC News, 11 May 2010
- ^ Standard Life buys Focus for £42m BBC News, 7 December 2010
- ^ "E-mail reveals Standard Life 'smeared' critic". FOIA Centre. 25 February 2006.
- ^ Nicole Blackmore (27 February 2013). "Standard Life Wealth acquires Newton's private client division". Fundweb.
- ^ Richa Naidu (24 March 2014). "Standard Life in advanced talks to buy Phoenix asset management unit". Reuters.
- ^ Simon Jessop (26 March 2014). "Standard Life ramps up fund business with Ignis acquisition". Reuters.
- ^ Manulife to buy Standard Life's Canadian assets for $3.7 billion. Reuters, 4 September 2014
- ^ "CityAM News - Disposal of Canadian Companies". CityAM. Archived from the original on 29 May 2015. Retrieved 2 February 2015.
- ^ "BBC News - Standard Life reports sharp rise in operating profit". BBC News. Retrieved 21 March 2015.
- ^ "London Stock Exchange, Market News". London Stock Exchange. 6 February 2015. Archived from the original on 29 May 2015.
- ^ "Standard Life completes purchase of Pearson Jones in £1bn advice play". Professional Adviser. 11 May 2015.
- ^ "Standard Life names restricted advice business 1825". Professional Adviser. 1 May 2015.
- ^ Osborne, Hilary; Treanor, Jill; Osborne, Hilary; Treanor, Jill (4 July 2016). "Standard Life shuts property fund amid rush of Brexit withdrawals". The Guardian. Retrieved 14 April 2017.
- ^ Williams-Grut, Oscar (5 July 2016). "'2016 is shaping up to be a rerun of 2007:' A giant UK property fund is stopping people taking money out". Retrieved 14 April 2017.
- ^ "Aberdeen Asset Management and Standard Life confirm merger terms". BBC News. 6 March 2017. Retrieved 7 March 2017.
- ^ "CMA clears Standard Life-Aberdeen Asset Management merger - BBC News". Bbc.co.uk. Retrieved 8 August 2017.
- ^ "Standard Life (UK): Merger with Aberdeen Asset Management (UK) - Update". FTSE. 9 August 2017. Archived from the original on 11 August 2017. Retrieved 10 August 2017.
- ^ "Edinburgh pensions operation supports 2,800 jobs in city". Herald Scotland. Retrieved 31 March 2021.
- ^ Cohn, Michael Shields, Simon Jessop, Carolyn (6 December 2019). "Britain's Phoenix to buy Swiss Re's ReAssure business for $4.1 billion" – via www.reuters.com.
{{cite web}}: CS1 maint: multiple names: authors list (link) - ^ "Standard Life Aberdeen becomes abrdn as it moves to 'single global brand'". Investment Week. 5 July 2021. Retrieved 6 July 2021.
- ^ Treanor, Jill (26 January 2007). "Standard Life boss apologises for making racist remark". The Guardian. Retrieved 14 April 2017.
- ^ Standard Life in bid to axe 1,000 jobs Evening Times, 23 March 2007
- ^ a b "Fury at £5m for Standard Life bosses". Edinburghnews.scotsman.com. Retrieved 19 April 2011.
- ^ BBC (27 February 2014). "Scottish independence: Standard Life draws up 'Yes' contingency plan". BBC. Retrieved 27 February 2014.