Commenting on the transaction, Sir Gerry Grimstone, Standard Life Aberdeen's chairman - who also announced that he would stand down as chairman at the end of 2019, said: "This transaction completes our transformation to a capital light investment business".
Standard Life Aberdeen's 2017 results saw the group's reported adjusted pre-tax profit rise to £492mln, up from £385mln in 2016, with pro forma fee-based revenue slipping slighting to £1.8912bn from £1.920bn.
By exiting insurance - a move which it said "significantly simplifies the group" - it has cleared one of the hurdles to regaining control of a £109bn investment mandate from Lloyds Banking Group.
His co-chief executive Martin Gilbert, Aberdeen Asset Management's former boss and Skeoch's fishing partner, was paid 4.3 million pounds in the 12 months to December 2017, according to data supplied by an SLA spokesman.
However, inflows from equity investments were up 8% at £16.2bn, from £15.0bn in 2016.
Goldman Sachs Group reiterated a "buy" rating on shares of Standard Life Aberdeen in a research report on Monday, February 5th.
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The deal will see Phoenix pay £2,930m for the business, financed through £1,971m in cash alongside a 19.9% shareholding in Phoenix. The sale is expected to complete in the third quarter of 2018.
In a statement, Standard Life Abderdeen said: "While the long-term savings market in the United Kingdom is supported by attractive structural growth trends, the board believes that Standard Life Aberdeen can best capture the benefits of these growth dynamics through Aberdeen Standard Investments and its retail platforms".
It added that owning advice business and platforms allowed the investment manager to have "greater proximity" to retail customers.
Grimstone added that the deal concludes "a process started in 2010 with the sale of Standard Life Bank, continuing with the sale of our Canadian business and the merger previous year between Standard Life and Aberdeen Asset Management".
He said: "The announcement that we have made today, if approved by shareholders, marks the completion of the transformation of the company from Europe's largest mutual life assurance company, to a global investment powerhouse".
Julie Chakraverty, Lynne Peacock and Akira Suzuki will retire from the board at its next annual general meeting.