The firm said the decision follows a “strategic review” conducted by Axa UK of the UK life & savings market and comes hard on the heels of the group’s decision to sell its Isle of Man unit.
However, the firm added that its Axa UK Property & Casualty, Health and Asset Management operations were not included in the scope of the strategic review, nor part of the proposed transactions. In fact, according to Axa UK CEO, Paul Evans the disposals are designed to allow Axa to rebalance the focus of its UK activities back toward these areas.
According to the firm the overall consideration for the sale of the UK Life & Savings businesses included in the contemplated transactions is currently expected to amount to around £650m.
On acquisition, the Elevate platform will add over £9.8bn in assets under administration to Standard Life’s UK adviser business across more than 160,000 customers, Standard Life said, adding that the deal reaffirms its commitment to the UK adviser market.
On completion, the combined platform business will house assets under administration of £36.4bn, 350,000 customers, and net asset inflows of £5.7bn in 2015.
Barry O’Dwyer, managing director corporate, retail and wholesale at Standard Life said the deal comes at a time when the need for high quality advice has never been greater.
“Today’s announcement demonstrates further progress towards building a simplified and well diversified investment company by strengthening Standard Life’s leading position in one of our key growth channels,” he said.
The firm added: "Combining the distribution reach and capabilities of both Standard Life and Elevate. This acquisition expands the nationwide coverage of Standard Life’s platform and enhances its ability to attract and support the growth of the UK’s most progressive advice businesses."