Standard Life Delivers Strong FY 2025 Results

Standard Life plc (SDLF) reported robust full-year 2025 results, demonstrating strong operating momentum and significant progress against its three-year strategic plan.

The company’s focus on profitable growth and balance sheet strengthening has yielded positive results, supporting increased shareholder returns and greater financial flexibility.

The company’s operating cash generation increased by 5% to £1,474 million, up from £1,403 million in the previous year. IFRS adjusted operating profit surged by 15% to £945 million, compared to £825 million in 2024.

Cumulative annual run-rate cost savings reached £180 million, a substantial increase from £63 million the year prior. The Shareholder Capital Coverage Ratio improved to 176%, up from 172%.

Standard Life’s Pensions and Savings segment witnessed a 23% increase in IFRS adjusted operating profit, reaching £389 million, driven by a 7% growth in average assets under administration (AUA) to £204.6 billion. Workplace net inflows remained strong at £5.3 billion, with new Workplace members up 14% to 247,000. Retirement Solutions also performed well, with a 3% increase in operating cash generation to £879 million.

The board is recommending a 2.6% increase in the final 2025 dividend to 28.05 pence per share, bringing the total dividend to 55.40 pence per share. At the end of 2025, distributable reserves stood at £5,800 million, compared to £5,571 million in the previous year. This reflects the company’s commitment to returning value to shareholders.

Driver Breakdown:

• Strategic Execution: Strong execution across strategic priorities focused on customer engagement and distribution.
• Cost Efficiencies: Cumulative run-rate cost savings significantly increased, contributing to profitability.
• Market Position: Well-positioned in attractive markets with structural growth drivers.

CEO Andy Briggs stated, “Our results demonstrate strong progress delivering on our strategic priorities… We are firmly on track to deliver our 2026 financial targets, building momentum by continuing to sharpen our competitive position.”

Standard Life is firmly on track to deliver all its 2026 financial targets, which support its progressive and sustainable dividend policy. The company expects to deliver approximately £500 million of excess cash in 2026. Beyond 2026, excess cash will be deployed to the highest returning opportunities, aligning with the company’s capital allocation framework.