View more on these topics

Aegon distribution arms post £2m loss

Aegon hq 480

Aegon’s distribution arms Origen and Positive Solutions have posted a combined loss of £2m for 2012, but cost savings have seen Aegon’s UK earnings jump to £85m.

Origen and PosSol made a combined loss of £6m in 2011 and £5m in 2010.

Underlying pre-tax earnings for the Aegon UK business are up a massive 1600 per cent from £5m in 2011 to £85m in 2012, following the completion of Aegon’s programme to target cost reductions of 25 per cent, equating to £80m. In 2011, Aegon also had to pay out £100m in customer redress after the FSA fined Scottish Equitable £2.8m in December 2010 over administrative failings.

Between October and December, the UK business posted underlying earnings before tax of £20m, compared to a loss of £22m for the same period in 2011.

The life business saw earnings drop 43 per cent from £30m to £17m, while pensions business grew from a £50m loss to earnings of £3m.

Origen and PosSol earnings amounted to nil over the last three months of 2012, compared to a loss of £2m for the same period the previous year.

Aegon says it expects to see a reduction in pension business this 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 fourth quarter. This adverse effect is expected to continue into 2013.”

Evolve Financial Planning director Jason Witcombe says: “I genuinely do not know what the future holds for Origen and PosSol, but there has to be a question mark over how long any business can sustain losses for.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm