LONDON, March 5, 2026, 08:23 GMT
- Lloyds has emerged as the frontrunner in the opening round of bids for Aegon’s UK business, according to a report.
- Phoenix and Canada Life are bidding too, according to the report, which put the unit’s value somewhere between 1 billion and 1.5 billion pounds.
- Lloyds rolled out another round of share buybacks, keeping its capital return strategy moving.
Lloyds Banking Group plc has emerged as the frontrunner after the opening bids for Aegon’s UK arm, according to Financial News, which cited sources close to the talks. Both Phoenix Group and Canada Life have submitted initial proposals too. The business could fetch anywhere from 1 billion to 1.5 billion pounds. Final bids are expected next month, with a decision likely by April. Goldman Sachs and JPMorgan are on advisory duty. The prospective buyers declined to comment, Financial News noted. 1
The shift is significant—banks are chasing more fee revenue from wealth and pensions, with the tailwind from rising interest rates starting to dissipate. Back in February, NatWest signed off on a £2.7 billion purchase of Evelyn Partners. RBC Capital Markets analyst Benjamin Toms described the acquisition as “transformational” for NatWest’s ambitions with wealthier clients. 2
Lloyds has pitched a comparable message to investors. Back in January, CEO Charlie Nunn told them, “our continued business momentum and strategic delivery enable us to upgrade guidance.” The bank boosted its 2026 profitability goal and launched a 1.75 billion-pound share buyback on the same day. 3
Aegon has kicked off a strategic review of its UK operations, eyeing a broader shift in focus to the U.S. and its Transamerica unit. Back in February, CEO Lard Friese told Reuters the company would circle back with a UK update this summer. 4
Lloyds picked up 20,187,597 shares on March 4, paying an average 98.0521 pence, the company revealed in a U.S. filing. Goldman Sachs International handled the transaction. The lender plans to cancel the shares—buybacks like this cut the total outstanding. 5
Lloyds ended Wednesday at roughly 98 pence, according to Hargreaves Lansdown data. 6
Lloyds snapping up Aegon UK would bulk up its position in retirement and workplace savings, right next to Scottish Widows. The logic’s straightforward. Pulling it off, less so.
But plenty can derail the process. Auctions sometimes stall. Rivals may drive valuations higher, and regulators could step in, slowing integration if they spot risks for customers shifting pensions or investments between platforms.
Phoenix stands out as a clear rival in the process, thanks to its track record in UK pensions consolidation. Canada Life, on the other hand, brings scale in life and retirement. But for Lloyds, the real challenge would kick in after any deal is signed—blending systems, integrating distribution, and handling customer service, all while keeping expenses in check.
Right now, it’s as much about signals as about figures. Investors want more clarity: Lloyds on its strategy, and Aegon on just what it plans to retain in the UK.
