Standard Life (SDLF) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 financial performance, with operating cash generation up 19% to £647m and total cash generation at £950m, progressing toward three-year strategic targets for cash, capital, and earnings.

• Focused on building the UK's leading retirement savings and income business, with growth in both Pensions & Savings and Retirement Solutions, and a single group-wide operating model.

• Delivered profitable growth, deleveraging, and continued investment in innovation, digital solutions, and operational efficiency.

• On track to meet or exceed 2024 and 2026 financial targets, supporting a progressive and sustainable dividend policy.

• Statutory IFRS loss after tax widened to £646m, mainly due to adverse economic variances from the Solvency II hedging strategy.

Financial highlights

• Operating cash generation rose 19% year-on-year to £647m; total cash generation reached £950m.

• IFRS-adjusted operating profit increased 15% to £360m; interim dividend per share up 2.5% to 26.65p.

• Solvency II surplus declined to £3.5bn (from £3.9bn FY 2023); shareholder capital coverage ratio at 168% (down from 176%).

• Solvency II leverage ratio reduced to 35%, with a target of 30% by end-2026.

• Assets under administration increased to £289bn, up 2% from FY 2023.

Outlook and guidance

• Confident in delivering at the top end of the £1.4bn–£1.5bn total cash generation target for 2024 and on track for a three-year target of £4.4bn.

• Targeting £900m IFRS adjusted operating profit and £250m annual run-rate cost savings by end-2026.

• Solvency II leverage ratio targeted at c.30% by end-2026, with further debt repayment planned.

• Dividend policy remains progressive and sustainable, with future increases subject to Board discretion.