Standard Life Aberdeen hit as biggest client Lloyds pulls plug

A Standard Life logo sits on a wall outside Standard Life House, the headquarters of Standard Life Plc, in Edinburgh, U.K., on Saturday, Aug. 9, 2014.

Simon Dawson | Bloomberg | Getty Images

A Standard Life logo sits on a wall outside Standard Life House, the headquarters of Standard Life Plc, in Edinburgh, U.K., on Saturday, Aug. 9, 2014.

Standard Life Aberdeen said on Thursday the item had been served notice on a 109 billion pound ($153 billion) asset management deal by its biggest client, Lloyds Banking Group , further denting shares inside the recently-merged group.

Clients have pulled billions of pounds in assets inside the six months since Standard Life and also also also Aberdeen Asset Management formed one of Britain’s biggest asset managers, and also also also the Lloyds mandate represents 17 percent of SLA’s remaining 646 billion pounds under management.

The 11 billion pound merger triggered the right for Lloyds and also also also Scottish Widows, which can be part of the British bank, to review an agreement struck in 2014 for Aberdeen to manage pension assets on behalf of Lloyds’ insurance and also also also wealth units as Standard Life can be a “material competitor” to both.

At the time of the merger, SLA said the item had agreed with Lloyds to discuss “ways in not bad faith to build a successful relationship”, and also also also in return, Lloyds committed to keeping its assets invested with SLA for six months.

The two sides had been discussing the sale to Lloyds of a book of Standard Life’s corporate pension business today closed to brand-new customers, four sources told Reuters. Two told Reuters those talks had stalled. SLA declined to comment on the talks.

Meanwhile, Scottish Widows has been expanding in corporate pensions and also also also parent Lloyds also has broader ambitions in insurance after buying Zurich Insurance’s UK workplace pensions and also also also savings business in October.

“We are disappointed by of which decision in context of strong performance and also also also not bad service we have delivered,” Keith Skeoch and also also also Martin Gilbert, Standard Life Aberdeen’s co-chief executives, said in a statement announcing the review.

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