Aegon UK’s pre-tax earnings grew 37 per cent year-on-year despite the firm’s life business being hit by the costs of complying with Solvency II regulations.
The insurer’s Q4 2014 results statement, published this morning, reveals underlying pre-tax earnings rose 37 per cent to £22m, up from £16m in Q4 2013. Aegon says the increase was mainly driven by “improved persistency”.
But over the same period earnings from the life business fell 25 per cent, from £27m to £20m.
Aegon blamed “selective de-risking” of its investment portfolio to boost its position under Solvency II regulations and a one-off £8m boost in 2013 for the fall.
Pensions earnings grew to £2m, compared to a £10m loss in the last quarter of 2013.
Assets under administration on the platform rose from £1.3bn to £2.7bn also grew.
Aegon UK chief executive Adrian Grace says: “As the legislative revolution continued to unfold across the pensions industry at the end of 2014 we drove forward with the development of our multi-channel platform which provides solutions for advisers, workplace based employees and non-advised customers, to and through retirement on a single platform.”