View more on these topics

Aegon to sell closed life business Guardian

Aegon is to sell its UK-based Guardian life and pension business for £275m to European private equity group Cinven.

Guardian, which manages over 300,000 life insurance policies in the UK, has been closed to new business since 2001. Aegon will continue to manage the £7.4bn of assets of Guardian.

Guardian employs around 170 people and most employment arrangements will be transferred to the buyer upon completion of the sale.

Aegon’s chief financial officer Jan Nooitgedagt says: “Consistent with actions over the past three years to dispose of, or run-off, certain businesses deemed non-core, Aegon has concluded that managing the closed business of Guardian companies no longer fits with our strategic objective. We remain committed to the UK and to maximising the opportunities of Aegon’s chosen markets,Workplace Savings and At Retirement, which includes individual protection.”

The book value of the Guardian business amounted to £271m as per June 30 2011, while the embedded value amounted to £322m. Underlying earnings before tax was £23m in 2010.

The transaction is expected to close in the fourth quarter of 2011 and is subject to regulatory approval.

Recommended

Savills reports £20m profit in first half of 2011

Savills reported a pre-tax profit of £20m for the first six months of the year, which was a 39 per cent increase on the £14.4m reported in the same period last year. The former Savills Private Finance parent company’s revenue for the first half of the year was also up compared to the first half […]

Borrowers overpaying mortgageswhile rates are still low

Borrowers are increasingly looking to overpay on their mortgages, according to brokers. The Bank of England has kept bank rate at a record low of 0.5 per cent for the past 29 months and it is unlikely it will increase for some time. Emba group sales and marketing director Mike Fitzgerald says: “People are trying […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment