STANDARD LIFE POSTS £179M LOSS ON HEDGING CONTRACTS

Standard Life, the FTSE 100 pensions group, recorded an overall loss of £179m in the first half of the year after financial protection contracts the firm had purchased to guard against market volatility fell in value. The £473m in paper losses on these hedging contracts occurred because stock markets rose, causing the value of the protective policies to decline. Under strict accounting rules, Standard Life was required to record the drop on its books, though the group stated this represented a "known consequence" of its hedging strategy designed to protect cash, capital and dividend payments.

Despite the headline loss, Standard Life reported a 25 per cent increase in adjusted profit to £563m during the same period. Operating cash generation rose six per cent to £745m, positioning the group for mid-single-digit annual growth. Assets under administration grew five per cent to £333bn, and the firm raised its interim dividend by 2.6 per cent to 28.05p per share.

Chief executive Andy Briggs confirmed that £210m of a planned £250m cost-cutting programme had been achieved, with artificial intelligence assisting in restructuring operations and improving efficiency. Standard Life completed its debt repayment programme early in June 2026 after repaying £503m, and the group anticipates generating £500m in excess cash during 2026.