Aberdeen takes on pension policies worth £3bn from Phoenix Life

Aberdeen has announced that £3bn (€3.6bn) of pension scheme policies have transferred from Phoenix Life to abrdn Life and Pensions.

The transfer relates to a specific book of business, which includes UK defined benefit (DB) and defined contribution schemes (DC), as well as UK Local Government Pension Schemes (LGPS).

According to Aberdeen, the transaction highlights the strength and ambition of Aberdeen’s pension capabilities and offers an improved experience for policyholders and advisers, removing unnecessary complexity.

The transaction will have no impact on Aberdeen’s reported assets under management, as the firm had already been managing the underlying investment and providing distribution, administration and dealing services for the policies on behalf of Phoenix Life.

The transaction involved a Part VII transfer under the Financial Services and Markets Act 2000. It went through a robust legal and regulatory process, including consultation with policyholders, review by an independent expert, inputs from the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), and approval of the transfer by the High Court, which was granted in March 2025.

Aberdeen said the transfer will result in “minimal changes” for policyholders. However, abrdn Life will have an extended fund range available to all of its policyholders on one platform.

Part VII transfers

A Part VII transfer is a court-approved process for moving a business from one entity to another.

Another example of such transfer is Rothesay acquiring £6bn Scottish Widows’ in-force bulk annuity portfolio last year, which was Rothesay’s sixth transaction and initially structured as a reinsurance agreement.

Aron Mitchell, chief executive officer at abrdn Life and Pensions, said: “It is fantastic to bring £3bn of assets into the Aberdeen stable – a move which underscores our commitment to our pensions business. We have a long heritage of managing pension assets and huge ambition as we continue developing our capabilities in this area.”

“For policyholders, the majority of their interactions have always been with Aberdeen, so there will be minimal change,” he noted.

Mitchell added: “Following the transfer, abrdn Life is well-positioned for future growth, with an increased number of policyholders and assets under administration, and an extended fund range available.”

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