Aegon’s distribution arm which includes Origen and Positive Solutions has posted a combined pre-tax loss of £2m for the first quarter of 2013.
The distribution arm, which also includes Aegon’s 22 per cent stake in Tenet and its 3.5 per cent stake in Lighthouse, made a £1m pre-tax loss in the first quarter of 2012. It made a pre-tax £2m loss overall for 2012.
Pensions earnings fell 55 per cent to £5m in Q1, down from £11m in the same period in 2012.
Aegon attributes the drop in pensions earnings to loss of business post-RDR and says the adverse effect will continue throughout the first half of the year.
It says: “The negative effect from adverse persistency, which the UK insurance industry is experiencing as a result of the implementation of the RDR, amounted to £7m in the first quarter. This adverse effect is expected to continue at least into the second quarter of 2013.”
Aegon’s life business increased earnings 13 per cent to £17m from £15m.
Net underlying earnings fell 55 per cent to £18m, down from £40m in Q1 2012.
New life sales rose 37 per cent to £244m, up from £178m in the same period the previous year.
Aegon UK chief executive Adrian Grace says: “We will continue to adapt and evolve, investing in emerging technologies that will ensure productivity, sustainable growth and excellent customer outcomes.”
PMI Independent Financial Advisers director John Stewart says: “I think the distribution figures probably reflect how difficult a start to the year we have seen across all businesses. However, if those losses continue in the second quarter I am sure Aegon will be concerned.”