Standard Life Aberdeen share price rises as group mulls over capital return

Move to come as asset manager sells bulk of insurance business

Standard Life Aberdeen share price rises as group mulls over capital return

Shares in Standard Life Aberdeen (LON:SLA) have advanced in London in today’s session as the blue-chip asset manager said that it was considering the potential for a capital return. The move will come after the group wraps up the sale of the bulk of its insurance business to Phoenix Group, announced earlier this year.

As of 14:22 BST, Standard Life Aberdeen’s share price had added 1.01 percent to 370.80p, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.22 percent lower at 7,526.52 points. The group’s shares have lost nearly one percent of their value over the past year, as compared with about a four-percent gain in the Footsie.

Insurance disposal update

Standard Life Aberdeen updated investors on the sale of its UK and European insurance business to Phoenix, reiterating that the deal is expected to complete in the third quarter of the year. The FTSE 100 group said that the two companies were actively progressing with the separation and integration planning for the deal.

“Standard Life Aberdeen is also considering the potential for a substantial return of capital to shareholders following completion,” the blue-chip asset manager pointed out. SLA announced the sale of the business earlier this year, for a total consideration of £3.24 billion, including £2.28 billion in cash and a 19.99-percent shareholding in Phoenix.

Analysts on FTSE 100 group

The 15 analysts offering 12-month price targets for Standard Life Aberdeen for the Financial Times have a median target of 460.00p on the shares, with a high estimate of 520.00p and a low estimate of 376.00p. As of April 27, the consensus forecast amongst 17 polled investment analysts covering the blue-chip group has it that the company will outperform the market.  

As of 14:58 BST, Thursday, 03 May, Standard Life Plc share price is 364.05p.

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