Standard Life (SDLF) H2 2024 earnings summary

Executive summary

• Achieved strong financial performance in 2024, reaching the 2026 £1.4bn Operating Cash Generation (OCG) target two years early and upgrading key targets in cash, capital, and earnings.

• IFRS-adjusted operating profit rose 31% year-on-year to £825m, with the 2026 target upgraded to c.£1.1bn.

• Final dividend per share increased 2.6% to 27.35p, with total dividend per share at 54.00p.

• Strategic focus on growing pensions, savings, and retirement solutions, with digital innovation and customer-centric propositions.

• Focused on deleveraging, targeting c.30% Solvency II leverage ratio by end of 2026.

Financial highlights

• OCG up 22% year-on-year to £1,403m, driven by growth in pensions, savings, and retirement solutions, plus asset management contributions.

• Total cash generation of £1.8bn exceeded guidance; cumulative 2024–2026 cash generation target upgraded from £4.4bn to £5.1bn.

• IFRS loss after tax was £1.1bn, cushioned by a 14% increase in contractual service margin (CSM) to £3.7bn in adjusted shareholders' equity.

• Solvency capital coverage ratio at 172%, in the top half of the target range.

• Free cash flow generation of £891m, with free cash flow yield at 17%.

Outlook and guidance

• OCG expected to grow at mid-single digits going forward.

• Upgraded 2026 IFRS operating profit target from £900m to c.£1.1bn.

• £250m of annual run-rate cost savings by end of 2026 reaffirmed; £63m delivered in FY24.

• Focus on deleveraging to achieve a 30% leverage ratio by 2026, using excess cash for debt reduction.

• Continued investment in digital capabilities, product innovation, and cost efficiency.