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Aegon keeps protection but shuts pension admin division

Aegon is to retain its life insurance and protection business as part of its UK business restructure, but has decided to close its third party pension administration business.

The provider is also shutting its employee benefits software business.

As part of the restructure, first announced in June, Aegon is cutting a number of senior management roles over the course of the year and expects to have a more streamlined organisational structure by the end of 2011.

The closed book of Guardian Financial Services is being retained.

Aegon says it will soon begin consultation with unions Aegis and Unite about the impact of these measures, though says it cannot say at present how many roles will be affected.

The third party pensions administration business is part of Aegon Trustee Solutions business unit and employs 82 staff in Cheshire.

Aegon Benefit Solutions employs 7 staff in London.

Aegon UK chief executive Otto Thoresen says: “The decisions we have announced today follow a thorough review of our businesses and how they fit with our new strategy announced in June.

“Our new approach will see Aegon concentrate on the at retirement and workplace savings markets, which are already positions of strength for us in the UK.

“It is important that we continue to move forward with our restructuring programme to create a more efficient business, improve returns and ensure our long term success.”

Aegis general secretary Brian Linn says:”Today’s announcement is devastating news for our members in Aegon Trustee Solutions in Daresbury and Benefit Solutions in London.

“Although there are no expected job losses for at least a year, our members had high hopes these businesses would survive. We anticipate that this will be a painful process for everyone and we will do everything we can to help our members through this extremely difficult time.”

The restructure at Aegon’s UK business has already seen the closure of its group risk business, its withdrawal from the bulk annuities market and the reorganisation of the UK sales division.

These measures will mean the loss of 106 jobs.

Aegon says the restructure will help the company focus on its core businesses of life insurance, pensions, and asset management.

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Buying the tpa division (HS Admin as was) never looked the cleverest of ideas – like spending millions sponsoring British tennis.

  2. Not as bad as some were predicting, so I suppose we should be grateful for small mercies.

    I can think of a few Companies who were hoping Aegon were going to pull the plug on protection.

  3. There is more to come out yet, this is just the start of things to come.

  4. Yes. Much more to come. Sadly many good managers have been culled/allowed to leave. Staff not convinced by the replacements.

  5. how have they taken this long to get to this stage ?? shocked that lytham is staying as expected they would be gone considering just how bad the staff there are and so out of touch with the real financial services world.

  6. It is a shame that comments are directed toward a work force who’s jobs may be under threat and shows no sensitivity toward those who have already lost their jobs…….

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