£16M losses for PosSol and Origen
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Aegon’s adviser businesses Positive Solutions and Origen racked up losses of £16m in 2009 after a £1m loss in 2008.
Results from Aegon, published last week, show the IFA firms lost £8m in the fourth quarter and £3m in the third quarter, with the remainder of the losses made in the first half of last year.
Aegon blames the fourth-quarter drop on adverse market conditions and costs associated with adapting the business to the new regulatory environment.
’Both businesses have been taking steps to improve performance and have the right plans in place to move forward this year’
The firm refuses to give a breakdown of losses between the two businesses.
An Aegon spokeswoman says: “Like many other adviser businesses, Positive Solutions and Origen had a challenging year, with new business activity slowing down due to the recession.
“They have had to invest for the future to ensure their businesses are ready and qualified to flourish after the retail distribution review. Both businesses are taking steps to improve business performance and have the right plans in place to move forward this year.”
Positive Solutions is increasing the minimum production turnover for partner firms from £20,000 to £25,000.
Chief executive Jim Reeve says: “We have raised the production threshold to £25,000, which is very modest for a professional IFA, but the fee structure has not changed.”
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