Aegon outsources administration services for 1.4m customers

Aegon has announced a 15-year contract with IT company Atos to service and administer 1.4m of its non-platform business customers.

The clients hold a variety of different types of protection policies.

Aegon will continue the administration and servicing of all platform policies and schemes across Aegon Retirement Choices, Aegon Platform (previously Cofunds and Investor Portfolio Service), TargetPlan (previously BlackRock), Aegon One Retirement, Retiready and its institutional platform.

The company states the agreement is expected to lead to annual run-rate expense savings for Aegon of approximately £10m initially, growing to approximately £30m over time.

Atos has serviced and administered Aegon’s 500,000 protection customers since 2016.

The teams working on the contract will be based in Edinburgh.

Atos UK and Ireland chief executive, Adrian Gregory, says: “We look forward to working with the Aegon team to deliver operational and end-to-end customer service excellence, by blending the existing talent with tailored innovative technologies.

“This agreement also highlights the increasing footprint and ambition of Atos in providing business transformation expertise to the life and pensions market and the broader financial services sector.”

Brian Linn, general secretary of Aegis the Union says: “We are encouraged that Aegon’s review of Existing Business has resulted in a solution that guarantees the future of the Edinburgh site and provides opportunities for growth with a commitment to no offshoring of jobs.”