Aegon retains protection business
Share
Aegon UK chief executive Otto Thoresen has stressed his commitment to distributing through intermediaries after revealing that the provider will retain its life insurance and protection offering.
The move comes as part of a restructure of UK business which will see Aegon focus on the at-retirement and workplace savings markets and cut costs by 25 per cent.
The company is closing its third-party pension administration business and its emp-loyee benefits software business. A number of senior management roles are being cut over the course of the year. The closed book of Guardian Financial Services is being retained.
Earlier this month, Aegon announced over 100 job losses due to its regional sales centres being cut from 12 to six.
Following Standard Life’s announcement that it will look to grow its direct offering, Thoresen says advisers remain key to delivering Aegon’s strategy.
He says: “We are very committed to the intermediary market. It is clear that as the UK long-term savings sector develops over the next five to 10 years, the adviser sector is going to be very dominant in delivering solutions to those customers and that is where our focus is too.”
Thoresen believes that protection products should form part of retirement planning and says Aegon’s protection and at-retirement businesses fit together well.
Aegon plans to develop its existing at retirement products by building on the use of guarantees. It also intends to hold on to its sponsorship of the British tennis championships.
Aegon’s adviser arms Origen and Positive Solutions and its asset management business were not reviewed as part of the restructure.
Origen and Positive Solutions recorded a £2m loss for the second quarter of this year and posted a £16m loss for 2009.
Bright Grey proposition director Roger Edwards says: “Aegon has clearly shown its hand that the focus will be on the at-retirement market, raising concerns among protection advisers that they will be sidelined as it chases business on a different playing field.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
