Aegon mulls exit from UK protection
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Aegon could pull out of the UK protection market in September after reviewing its offering, along with other non-core business areas.
Aegon announced this morning that it is dramatically scaling back its UK business by cutting 25 per cent of costs by 2011 and refocusing around at retirement and workplace saving products.
In a web broadcast for investors and analysts, which followed weekend press reports that the dutch insurer was offloading its UK arm in a £1.5bn deal, Aegon revealed it had considered a full disposal but said doing so in the current market would not represent good value.
The insurer says it is pulling out of bulk annuities in the UK as current pricing conditions mean this business does not meet profitability targets.
Aegon says it will continue to invest in its Sipp proposition in a bid to improve return on capital from 2.7 per cent in 2009 to between 8 per cent and 10 per cent by 2014.
It says it has no plans to stop paying commission on group pensions until the end of 2012.
A spokesman says: “No decision has been made about other business areas, including protection. We will know more at the end of September when the review of non-core business areas will be complete.”
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Readers' comments (1)
Robert Donaldson | 22 Jun 2010 5:07 pm
Another one bites the dust!
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