The Standard Life brand has been purchased by Phoenix Group to add to the firm’s strategic partnership with Standard Life Aberdeen (SLA).
Back in August 2018, Phoenix Group purchased SLA’s insurance arm for £3.2 billion but the new purchase sum has not been disclosed.
SLA has already begun a branding review of its businesses which will be announced later this year.
SLA have confirmed that they have paid £32 million in costs to Phoenix for SLA employees to be transferred to work on the brand and have confirmed that the sale and transfer are not to impact on its results.
Chief executive officer Stephen Bird at SLA said “The Standard Life brand is important and has a strong recognition in the UK for life insurance and workplace pensions brand. We are looking at building Standard Life Aberdeen on a global asset management level and we are excited working on our own brand which will be announced later this year”.
The firms both agreed the deal was highly complex and SLA will pay £62.5 million to Phoenix to buy the Wrap Sipp, onshore bond and Trustee Investment Plan businesses which represent £36 billion of assets under management.
Originally the strategic asset management partnership which SLA currently manage £147.4 billion of Phoenix Group assets was set to end 2028 but this will be extended to at least 2031.
Existing services and platform arrangements between both groups will gradually be simplified and be part of the strategic partnership and Phoenix will pay £34 million to SLA to settle legacy matters.
SLA’s shareholding in Phoenix Group will stay at 14% and will have the right to appoint a director to the Phoenix Group board.
Phoenix Group chief executive Andy Briggs said, “He is delighted that Phoenix Group owns all of the life and pensions business of Standard Life and they are committed to investing is this business, the extension of the asset management deal will delivery a broader set of products and services to meet the financial needs of our customers as they journey to and through retirement”.
The merry go round of branding, mergers, take overs and rebranding will continue for some time as many companies, not just financial services groups, consider their positions in a post covid-19 world as well as global economics movement as many reposition their businesses for the future.