Aegon eyes UK annuity portfolio sale

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Aegon is considering selling its UK annuity book as part of a business review.

Earlier today Sky News reported the insurer is planning to sell some of its UK assets and has appointed investment bankers Citi to oversee the sale. Sources said the disposal could raise substantial proceeds for its Dutch parent company.

An internal memo circulated around Aegon’s UK office, seen by Money Marketing, reaffirms the provider’s commitment to the UK market and reveals it is reviewing its annuity portfolio.

The memo says: “Following recent speculation in the media, I would like to confirm that Aegon has a long term commitment to the UK market. We have built a market leading platform which continues to be the fastest growing platform both by percentage and in terms of asset growth.

“We have clear differentiation in our proposition “to and through” retirement and this is supported by innovative products such as Secure Retirement Income which is the only guaranteed product available on platform today.  We will continue to grow our platform both organically and through acquisition.

“As part of our on-going review of our portfolio of businesses, and our focus on drawdown and guaranteed products, we have initiated a review of our annuity portfolio in the UK.”

Aegon declined to comment.