Aegon has entered into exclusive talks with third party service provider Serco to outsource the administration of its protection business.
This part of the business, predominantly based in Lytham St Annes, provides customer service and administration support to Aegon’s individual protection business and to some small closed books of life and pensions.
It employs around 390 people and around 330 will move to Serco under the 10-year deal. The remaining 60 employees will stay with Aegon in proposition development, pricing, sales and actuarial roles.
Aegon says it does not expect to make any redundancies following the deal, which it says will allow it to focus on proposition developments and widening its distribution reach.
Aegon chief executive Adrian Grace (pictured) says: “Part of our strategy in the UK is to develop our business to be one of the leading providers of individual and business protection solutions. We are committed to providing excellent levels of customer service with cost-efficient operations and partnering with Serco will provide this for us. We remain committed to building our UK business focusing on our chosen markets of workplace savings and at-retirement, and our protection business is a core part.”