Standard Life eyes Axa Elevate platform

Global financial news outlet Bloomberg said Standard Life is in talks for the business unit as the French insurer seeks to sell off its UK life insurance and wealth investment units.

According to the reports, Axa was in talks to sell most of its life insurance and wealth management operations in two separate deals that could be worth £700 million.

The Elevate platform was launched in 2008, and in September last year it was revealed that the business had been put up for sale.

Royal London is understood to be among several firms interested in the protection part of the business. This includes SunLife, which sells direct-to-consumer cover to the over-50s market.

A spokeswoman for Standard Life says: “We don’t comment on market speculation.”

Axa Wealth has also declined to comment on the reports but the speculation adds to industry belief that the growth of platforms in the market will soon lead to a bout of consolidation, with Standard Life seen as among the stronger players.

Standard’s shares were up more than four cent at 361.6p.

Analysts at JP Morgan, which has an “overweight” position on the shares, said such a deal would create an immediate return on equity for cash that would otherwise be idle.

JP Morgan has raised its rating on Axa shares, which jumped by over four per cent on the reports, from neutral to overweight, saying the proceeds would strengthen its capital ratio by around two percentage points.