Aegon cuts sales jobs in platform push

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Aegon is to cut its salesforce from around 100 roles to 70 as part of a shift towards its platform business, Money Marketing understands.

Sales staff were called into a meeting yesterday where it is understood the insurer announced around 30 roles would be lost as a result of moving resources away from its legacy business.

An Aegon spokesman says: “We’ve always been very clear that digital is the way forward and that our focus is on growing the business through our platform.

“The platform remains our long-term strategic priority and we have implemented a new operating structure to support this. We are focusing our sales team behind the platform and unfortunately a number of roles will go in this process.

“Like any successful business we need to continue to evolve and the changes we’re making will help accelerate our growth.”

The firm says new roles will be created and it will aim to redeploy affected staff in other areas of the business. However, it could not say how many people would be retained.

Aegon’s Q3 results, published in November, revealed a 12 per cent fall in underlying pre-tax earnings as the retirement reforms continued to ravage its back book.

Earnings dropped 12 per cent year-on-year, from £22m to £19m. Within the provider’s life business, earnings fell 43 per cent, from £18m to £10m, while pensions profits more than doubled, from £4m to £9m.

Meanwhile the firm’s platform saw net inflows of £900m during the period, although this was primarily as a result of upgrading existing customers rather than attracting new money.

Aegon now has £5.3bn of assets on platform, up from £4.64bn at the end of the previous quarter.

In September, it emerged the Aegon Group, headquartered in the Netherlands, is preparing to sell off its UK annuity book .

The spokesman adds: “We confirmed we’d initiated a review of our UK annuity portfolio. This process continues and we will update the market in due course.”