The CAN$4bn (£2.25bn) sale of Standard Life’s Canadian arm to Manulife signals the severing of one of the provider’s last links to its mutual past.
The deal, which was announced last week, involves the sale of Standard Life’s Canadian long-term savings and retirement, individual and group insurance business to The Manufacturers Life Insurance Company, a Manulife Financial Corporation subsidiary.
It is understood that before Standard Life became a publicly listed company, high-flying staff, mainly actuaries and investment managers, were sent to Canada to train on a fast-track programme. When asked where it would now send its staff for training, a spokesman could not comment.
Standard Life’s global asset management business, Standard Life Investments, has also entered into a global agreement with Manulife, whereby Manulife will seek to distribute Standard Life Investments’ funds in Canada, the US and Asia.
David Nish, group chief executive of Standard Life, said: “This transaction accelerates our growth and reduces capital-intensity, while delivering value.”
Adviser view
Richard Hunter, head of equities at Bristol-based Hargreaves Lansdown, said: “The deal is a winner on two fronts. It enables a generous return of cash to shareholders, while enabling Standard Life to home in on its asset management business. But investors could be subject to tax on this cash return payment, so should carefully consider their options to avoid a painful tax bill.”