Standard Life

Website: Standard Life
Index: FTSE 100
EPIC: SDLF
Supersector: Insurance
Sector: Life Insurance
Subsector: Life Insurance
Market Cap: £7.61B
Payout Frequency: Semi-Annual

Standard Life Dividend Analysis and Summary

Headline dividend details

Final 2025 dividend: 28.05p per share (up +2.6% YoY)
Total 2025 dividend: 55.40p per share (up +2.6% YoY)
Ex-dividend date: 09/04/2026
Record date: 10/04/2026
Payment date: 20/05/2026
Dividend policy: Progressive and sustainable; Board expects the interim dividend to be set in line with the prior year’s final (i.e., 28.05p)

Coverage and affordability

Operating Cash Generation (OCG): £1,474m vs. cash dividend cost: £548m ? dividend covered by OCG ~2.7x
Free cash flow: ~£1.0bn in 2025 ? dividend covered ~1.8x
Solvency II surplus: £3.6bn; SCCR: 176% (upper half of 140–180% range)
Distributable reserves (HoldCo): £5.8bn
Excess cash 2025: £423m; company targets ~£500m excess cash in 2026
Leverage: SII leverage 33%, targeting ~30% by end-2026

Dividend growth trajectory

Ordinary dividend increased +2.6% YoY; stated 10-year total dividend CAGR ~3%
Guidance for mid-single-digit OCG growth supports ongoing low-single-digit dividend growth in the near term
2026 is final year prioritising excess cash for deleveraging; post-2026 plan (to be announced in Q4 2026) may allow higher shareholder returns

Financial and capital allocation support

OCG up +5% to £1,474m; IFRS adjusted operating profit up +15% to £945m
Pensions & Savings margin improved to 19bps; Retirement Solutions OCG margin 219bps; recurring management actions delivered £560m
Balance sheet strength under Solvency II prioritised; hedging reduces economic volatility impacting cash/capital (IFRS volatility accepted)
Capital allocation: up to ~£200m annuity capital deployment in 2026; deleveraging continues through 2026, then excess cash to highest-return opportunities (growth, targeted M&A, and potentially increased returns)

Structural changes and potential implications

Corporate rebrand: Phoenix Group Holdings plc renamed to Standard Life plc (Feb 2026); no change to dividend mechanics but brand may aid distribution and growth
In-housing of annuity-backing assets (plan to internalise ~£20bn) and the Wipro strategic partnership support cost reductions and recurring cash generation
No share consolidation, scrip alternative or M&A affecting the dividend disclosed

Risks and flags to dividend stability

Dependence on recurring management actions: ~£560m in 2025; management guides to ~£0.5bn p.a. as sustainable, but this remains an execution dependency
Market/technical risks: longevity +6 months reduces SCCR by 8%pts; property -12% reduces surplus by ~£0.2bn; credit downgrade scenario -7%pts
PRT competitiveness: disciplined pricing could limit volumes; capital deployment capped (~£200m), potentially tempering future OCG if spreads compress
IFRS optics: IFRS shareholders’ equity fell to £244m (management says not a constraint under policy), which may unsettle sentiment despite strong Solvency II metrics
Retail net outflows persist (though improving); if prolonged, could moderate fee-based growth momentum
Near-term capital returns are moderated by the commitment to deleveraging through 2026

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
03/04/2025	21/05/2025	Final	27.3500p	GBX
25/09/2025	30/10/2025	Interim	27.3500p	GBX

Total (Annual Dividends Per Share): 54.70p

Dividend Yield = Annual Dividends Per Share (54.70p) ÷ Share Price (762.6p) = 7.17%

Ex Dividend Date	Payment Date	Type	Amount	Currency
09/04/2026	20/05/2026	Final	28.0500p	GBX
25/09/2025	30/10/2025	Interim	27.3500p	GBX
03/04/2025	21/05/2025	Final	27.3500p	GBX
03/10/2024	31/10/2024	Interim	26.6500p	GBX
11/04/2024	22/05/2024	Final	26.6500p	GBX
28/09/2023	23/10/2023	Interim	26.0000p	GBX
30/03/2023	10/05/2023	Final	26.0000p	GBX
25/08/2022	12/09/2022	Interim	24.8000p	GBX
31/03/2022	09/05/2022	Final	24.8000p	GBX
19/08/2021	03/09/2021	Interim	24.1000p	GBX

Year

Number of Shares:

Payment	Paid	Amount
Next	–	–
Previous	–	–