Standard Life plays down the Brexit impact
Company says it is in good shape amid uncertainty
STANDARD Life chief executive Keith Skeoch has said the company will only need to move tens of people, not thousands, to other European countries following Brexit and noted the company is used to dealing with regulatory complexities overseas.
Asked about the potential impact on the life and pensions giant of the UK leaving the European Union, Mr Skeoch said: “Am I going to have to move a lot of people from London or Edinburgh to Dublin or Frankfurt? No. Am I going to have to move some people or hire people? Yes, but we’re talking tens. not thousands. like some investment banks.”
Mr Skeoch was talking after the company posted a forecast-beating profit for 2016, for which the value of his pay package fell 20 per cent.
He said Edinburgh-based Standard Life had made good progress during the year and was well placed to deal with the period of elevated political uncertainty that directors believe is in prospect given events on both sides of the Atlantic.
Asked about the possibility of a second independence referendum being held in Scotland next year, Mr Skeoch said Standard Life was “totally apolitical”.
Directors would look for clarity about what is going to happen and how any development might impact the business and its customers before reaching a view.
Mr Skeoch said the company has been a beneficiary of pensions reforms that have given people more freedom to decide how they save for retirement.
He hailed the benefits of the £390 million acquisition of the Glasgow-based Ignis asset management business, which Standard Life has integrated ahead of schedule.
Mr Skeoch said Standard Life is scanning the horizon for acquisitions that could help it create value shareholders but gave no details.
While Standard Life noted opportunities to cut costs through streamlining customer operations and increasing automation, Mr Skeoch said that might not necessarily result in it reducing job numbers in Scotland.
Increases in profitability could help Standard Life invest in growth, with positive implications for employment.
It has provided £175 million following a review by the Financial Conduct Authority last year into annuity sales.
The company grew operating profits nine per cent to £723m, from £665m in 2015. Analysts forecast £684m.
Assets Under Management increased 16 per cent annually, to £357bn from £307.4bn. Standard Life said the increase was driven by market movements, including the benefit of the fall in the pound.
Pensions freedoms have increased demand for products such as Self Invested Personal Pensions.
Mr Skeoch earned £2.75m total remuneration last year, against £3.45m in 2015.
Standard Life increased the full year dividend by eight per cent, to 19.82p from 18.36p. Shares in the firm closed down 5.7p at 369.4p.
‘‘ Am I going to have to move a lot of people from London or Edinburgh to Dublin or Frankfurt? No