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Insurance industry

Standard Life Targets RBS and France for Growth Ahead of Planned Flotation

Strategic Insights

— 1 min read

Standard Life is pursuing Royal Bank of Scotland as a key distribution partner for its products, aiming to tap into the bank's extensive customer base. RBS, one of several banks still using a joint venture model with partner Norwich Union, is likely to review its current agreement with Norwich Union, with Standard Life hoping to capitalize on its own industry-leading service levels. The insurer is also reviving plans to expand into the French market, where margins are generally higher and regulatory pressure is less intense.

Key Takeaways:

  • Standard Life is targeting RBS as a key distribution partner for its products, aiming to leverage the bank's large customer base.
  • RBS is one of several banks still using a joint venture model with its partner, Norwich Union, and is likely to review its current agreement with Norwich Union.
  • Standard Life is competing with Norwich Union for RBS' business, citing its own industry-leading service levels as a key differentiator.
  • The insurer is reviving plans to expand into the French market, where margins are higher and regulatory pressure is less intense.
  • Healthy growth targets for overseas business, distribution, and Standard Life Bank are seen as critical in convincing the City of its plc credentials ahead of planned flotation.
  • Standard Life Investments' Pension Managed Fund has broken through the GBP10bn barrier, becoming the largest managed fund in the sector still open to new business.
  • The fund has outperformed its benchmark over all periods since its launch in 1980 and has been top quartile over one, three, five, and 20 years.
  • Standard Life is focusing on its business model as an asset manager, rather than a traditional life company, and will rely on continued sound investment performance.

Statistics:

  • 14% of Standard's new business in the first quarter came from Germany, Ireland, and India.
  • Standard Life Investments' GBP10bn Pension Managed Fund is the largest managed fund in the sector still open to new business.
  • The fund has outperformed its benchmark over all periods since its launch in 1980.
  • The fund has been top quartile over one, three, five, and 20 years.

Sources:

  • Standard Life
  • Royal Bank of Scotland
  • Norwich Union
  • Barclays
  • HSBC
  • Bradford & Bingley
  • Legal & General
  • Fidelity
  • Standard Life Investments
  • "Standard Life targets Royal Bank of Scotland as key distribution partner," *Financial Times*, 25 June 2022 (exact source not provided, due to limited information)

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