Losses for adviser firms as Aegon profits rise 25%
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Positive Solutions and Origen continued to run at a loss in the second quarter this year although parent company Aegon has reported a 25 per cent increase in underlying earnings before tax.
The Dutch insurer reported a £2m loss for the distribution businesses, stating the firms “benefited from improved business performance and market conditions, which limited losses during the quarter”.
Origen and Positive Solutions recorded a loss of £2m for the first quarter after posting losses of £8m in the fourth quarter of 2009, £3m in both the first and third quarters of last year and £2m in the second quarter - totalling a £16m loss for 2009.
Aegon refused to give an update on plans announced in June to cut a quarter of its costs in the UK as it revealed that underlying earnings jumped to £429m from £341m in the second quarter. Aegon cites improved financial markets for the boost and a stronger dollar.
New life business in the UK leapt by 25 per cent to £263m on an annual premium equivalent basis due to strong pension sales of £240m, up from £;169m last year.
UK chief executive Otto Thoresen says: “We see strong growth potential in the at-retirement and workplace savings markets - both of which are areas where we already have leading market positions so we will move forward from a position of strength.”
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