Standard Life reported an overall loss of £179m for the first six months of 2026. This was largely attributed to £473m in paper losses on financial protection contracts, which are designed to safeguard the business against market downturns.
The company stated that these losses were a "known consequence of our hedging strategy that is designed to protect our cash, capital and dividend," as stock markets rose, reducing the value of these protective policies.
Despite the overall loss, the FTSE 100 pensions giant saw a 25 per cent increase in adjusted profit, reaching £563m. Operating cash generation also rose by six per cent to £745m, with the firm indicating it is on track for mid-single-digit annual growth.
Standard Life also confirmed that £210m of its £250m cost-cutting target has been achieved, with artificial intelligence contributing to this effort. Assets under administration grew five per cent to £333bn, and the interim dividend was raised by 2.6 per cent to 28.05p per share.
The company completed its debt paydown programme early in June 2026, repaying £503m. This is expected to generate £500m in excess cash in 2026 alone.