An unsourced report in the Sunday Express, suggesting that Goldman Sachs is advising Axa of France on a possible bid for recently demutualised Standard Life, has sparked a fresh round of consolidation chatter in Britain’s volatile life insurance sector.
Standard has been considered to be “in play” ever since the institution decided, more than two years ago, to end 180 years of mutual ownership and instead seek a stock market flotation. The company subsequently joined the London market in July. Recently, attention has focused on the make-up of the boardroom at Standard, following the sudden departure of finance director Alison Reed and the looming retirement of chief executive Sandie Crombie.
Shares in Standard rose more than 2 per cent during early trading on Monday. Speculation over Axa’s intentions follows recent reports that the French group and its Swiss counterpart, Swiss Re, had approached Lloyds TSB with a view to acquiring the bank’s Scottish Widows life business.
It also follows the abortive move on the Prudential by Aviva earlier in the year. At the time Axa was widely tipped as a potential counter bidder but, prompted by the Takeover Panel, ruled itself out of bidding for the Pru in April.