February 23, 2018 / 7:13 AM / 3 months ago

BRIEF-Standard Life Aberdeen sells insurance unit to Phoenix for 3.2 bln stg

Feb 23 (Reuters) - Standard Life Aberdeen Plc:

* FINAL RESULTS & TRANSACTION ANNOUNCEMENT

* ‍SALE OF INSURANCE BUSINESS AND ENHANCED LONG-TERM STRATEGIC PARTNERSHIP WITH PHOENIX GROUP​

* ‍SALE OF CAPITAL-INTENSIVE INSURANCE BUSINESS TO PHOENIX GROUP WHILE RETAINING CORE OF FAST GROWING RETAIL CHANNEL​

* ‍TOTAL CONSIDERATION OF £3.24BN 1 , INCLUDING £2.28BN 1 IN CASH AND A 19.99% SHAREHOLDING IN PHOENIX GROUP​

* ‍ENHANCED AND EXPANDED STRATEGIC PARTNERSHIP WITH PHOENIX GROUP PROVIDING A LONG-TERM SOURCE OF ASSETS, ACCESS TO RETAIL CUSTOMERS AS WELL AS OPPORTUNITY FOR WIDER COLLABORATION​

* ‍ENHANCED LONG-TERM STRATEGIC PARTNERSHIP AND VALUABLE INVESTMENT IN PHOENIX GROUP PROVIDING: O INVESTMENT MANAGEMENT OVER £158BN OF ASSETS UNDER MANAGEMENT (AUM)​

* ‍A COMMITMENT TO REVIEW FURTHER INVESTMENT MANAGEMENT MANDATES NOT CURRENTLY MANAGED BY ABERDEEN STANDARD INVESTMENTS, SUBJECT TO NORMAL COMMERCIAL AND GOVERNANCE CONSTRAINTS​

* ‍OPPORTUNITY FOR WIDER COLLABORATION AS ASSET MANAGER OF CHOICE FOR PHOENIX GROUP​

* ‍REINFORCED THROUGH 19.99% SHAREHOLDING AND REPRESENTATION ON PHOENIX GROUP BOARD​

* SAYS ‍TOTAL AUMA INCREASED BY 1% TO £654.9BN (2016: £647.6BN)​

* SAYS ‍BENEFITING FROM DIVERSIFICATION WITH GROWTH CHANNEL NET OUTFLOWS IMPROVING TO 3.7% (2016: 6.0%) OF OPENING AUMA​

* SAYS ‍ABERDEEN STANDARD INVESTMENTS NET OUTFLOWS DOWN £4.0BN TO £22.1BN​

* SAYS ‍PENSIONS AND SAVINGS NET INFLOWS UP 37% TO £8.1BN (2016: £5.9BN)​

* ‍CHAIRMAN “THIS TRANSACTION COMPLETES OUR TRANSFORMATION TO A CAPITAL LIGHT INVESTMENT BUSINESS​

* SAYS ‍MATURE BOOKS OF BUSINESS NET OUTFLOWS OF £16.6BN (2016: £15.9BN) IN LINE WITH EXPECTATIONS AND FLAT AT 7% OF OPENING AUMA​

* SAYS ‍TOTAL ADJUSTED OPERATING INCOME INCREASED BY 4% TO £2,928M (2016: £2,820M) WITH FEE REVENUE UP 3% TO £2,763M​

* SAYS ‍COST/INCOME RATIO UP TO 66% (2016: 64%) LARGELY REFLECTING IMPACT OF ONE-OFF COSTS​

* SAYS ‍ADJUSTED PROFIT BEFORE TAX OF £1,039M (2016: £1,054M)​

* SAYS ‍ADJUSTED CASH GENERATION AFTER TAX OF £841M WITH 81% OF ADJUSTED PROFIT BEFORE TAX BEING CONVERTED TO CASH​

* SAYS ‍FULL YEAR DIVIDEND UP 7.5% TO 21.30P EXTENDING OUR UNBROKEN RECORD OF DIVIDEND GROWTH TO 11 YEARS​

* SAYS ‍WITH TODAY’S NEWS OF PROPOSED SALE OF CAPITAL-INTENSIVE INSURANCE BUSINESS AND AN ENHANCED LONG-TERM STRATEGIC PARTNERSHIP WITH PHOENIX GROUP, STANDARD LIFE ABERDEEN HAS COMPLETED ITS TRANSFORMATION TO A FEE BASED CAPITAL-LIGHT INVESTMENT COMPANY​

* SAYS ‍MERGER INTEGRATION IS PROGRESSING WELL AND WE ARE NOW TARGETING AT LEAST £250M OF ANNUALISED COST SYNERGIES​ Source text for Eikon: Further company coverage: (Reporting By Simon Jessop)

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