The partnership with PGH was reportedly expanded when SLA sold its UK and European life insurance business to Phoenix Group in 2018. While the insurance sale allowed SLA to “streamline its own operations”, it also created a “complex network” of commercial and operational services between the groups, including in respect of certain pensions and savings products and the shared use of the “Standard Life” brand.
The two groups have now agreed to simplify these arrangements and strengthen their relationship by extending the “price adjustment mechanism” agreed at the time of the insurance sale which aims at “protecting” SLA in the event of certain types of “asset withdrawals”.
Additionally, SLA will continue to partner with Phoenix Group to “design and provide” investment solutions for Phoenix customers. It will also acquire the TIP business from Phoenix Group to “consolidate its investments| offering for UK pension scheme clients.
Furthermore SLA will sell the “Standard Life” brand to Phoenix Group during the course of 2021. As a consequence, certain colleagues who support this brand and related marketing will also transfer to Phoenix Group.
Commenting on the transaction, Stephen Bird, CEO of Standard Life Aberdeen, said: “The most successful partnerships in business tend to be formed on clear and simple terms.
“What we are announcing today is an agreement that simplifies the relationships between Standard Life Aberdeen and our strategic partner Phoenix Group in a way that will allow us to work together constructively as partners for at least the next ten years.”
Andy Briggs, CEO of Phoenix Group, added: “The simplification of the Standard Life brand, sales and marketing will be a key enabler of Phoenix’s growth strategy, which in turn should lead to greater asset flows to ASI.”