Positive Solutions and Origen post further losses
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Positive Solutions and Origen continued to run at a loss in the second quarter this year but 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 “benefitted 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 announced that underlying earnings before tax jumped to £429m from £341m in the second quarter. Aegon cites improved financial markets for the boost and a stronger US dollar.
In the UK, underlying earnings increased slightly to £18m from £16m for the second quarter due to higher profits from annuities, which were partly offset by higher project-related expenses.
New life sales increased to £263m due to strong pension sales of £240m up from £169m last year.
Chief executive Alex Wynaendts says: “The significant increase in sales, underlying earnings and net income during the second quarter of this year demonstrate the continued strength of Aegon’s business. Consistent with our focus on serving the growing need for long-term retirement security, pension sales were particularly strong.
“We are implementing a number of key measures, as announced in June, to sharpen our focus on our core activities and improve returns, particularly within our business in the United Kingdom.
“Going forward, we will maintain our focus on better leveraging our broad resources, pursuing further operational improvements and putting Aegon’s provenexpertise to work for our customers in all our markets.”
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Readers' comments (3)
Simon Mansell | 12 Aug 2010 9:37 am
When we have regulation by retrospection, a reversal of buyer beware, a regulator that believes the consumer should be abrogated from all personal responsibility and a regulator that demands the requalification of those with the fewest complaints of any whilst failing miserably to regulate those with the greatest complaint record then how can any group make a profit?
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Anonymous | 12 Aug 2010 9:52 am
Don't be fooled, while regulation can be a thorn in the side, the business model if changed can also contribute to lost profits. Positive Solutions was a very profitable IFA Partnership when Aegon bought it. The personnel then charged to run it didn't have the skills or the knowledge of their predecessors to maintain the same momentum. Just ask the 100's of Partners that have since left to go directly regulated.
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Anonymous | 12 Aug 2010 4:02 pm
Anonymos obviously makes the comment based on the campaign waged by the former personnel to destabilise the company. What is being done at Positive Solutions is to strengthen the company and to ensure that post RDR the company is strong and well placed to move forward. When as Simon says you consider the constraints out on a company by current regulation requirements it is little wonder that companies find it difficult to make a profit. It would help greatly if we didn't have misinformation in the media such as that spread by Anonymous above that is designed to undermine the efforts of hard working members of the company.
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