STANDARD Life Aberdeen’s plan to return up to £1.75 billion to shareholders if it completes the deal agreed in February to sell its European insurance arm to Phoenix Group shows confidence in the prospects for the business.

Chairman Sir Gerry Grimstone told the company’s AGM yesterday that directors are clearer than ever about the potential that exists for the asset management-focused business to grow and prosper on a global stage.

But he also underlined the fact the business is facing challenges, besides the scale of the task involved in integrating Standard Life and Aberdeen Asset Management in line with the £11bn merger they agreed last year.

Sir Gerry noted Standard Life Aberdeen’s investment performance was mixed over the last financial year.

Directors appear confident the record can be improved, arguing it is long term performance that really matters.

But any questions about the company’s performance could be unhelpful for a group that wants to be seen as a world class investment business.

Lloyds Banking Group’s plan to take management of £109 billion Scottish Widows founds away from Standard Life Aberdeen has caused a big headache for the firm.

One investor voiced doubts at the AGM about the benefit of swapping an investment in an insurance-focused business offering the prospect of steady returns for a stake in an asset manager working in a much more volatile market.

Standard Life Aberdeen can expect tough questions about the Phoenix deal at the general meeting that will consider it next month.