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Aegon claims Cofunds integration will save £60m a year

Aegon says integrating the Cofunds platform has saved it £40m a year so far, and will eventually save it £60m once final integrations are complete.

In financial results for the second half of 2018 published today, Aegon adds that the actions it has taken have returned the service levels on its platform to where they should be.

Throughout last year Aegon suffered a number of challenges integrating the Cofunds business with its own platform business after acquiring Cofunds from Legal and General in 2016.

Advisers using the Aegon platform reported numerous problems with it and the provider issued an apology in response to problems with the Cofunds replatforming.

It now says the initial challenges are now over and the final phase of the Cofunds integration will take place in the first half of 2019 with the migration of assets from Nationwide’s online investment service that it powers.

In the second half of 2018, assets across Aegon UK’s platform business reached £128bn.

The first half of 2018 saw the migration of two portfolios of the Cofunds business by moving £57bn of institutional assets to Aegon technology in March, followed by £28bn of retail assets in May.

Aegon chief executive Adrian Grace says: “We placed a huge emphasis on restoring service levels associated with the Aegon platform following the migration of former Cofunds users to it in May. Between July and December significant strides were made and resource mobilised to address service issues.

“By the end of the year core operational services had returned to target levels. The focus now for the Aegon platform is on ensuring we provide the enhancements that advisers have requested and migrating the Nationwide book of business.

“We are clear on the functionality that needs to be prioritised for the coming months and beyond this have a continual programme of improvements planned for the service.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. I’m sure they will make these savings. Judging by their long term service record I guess this where most of the savings will come from – non existing service.

  2. Except the website still seems to have less functionality than Cofunds did and everyone I speak to is taking their clients away from the platform one by one. This is just another ‘everything’s fine’ statement similar to the one they released when the platform first migrated.

  3. Gradually moving clients away, the whole transition has been an absolute farce. Lack of communication, not easy to navigate and poor functionality

  4. I suspect it will cost them significantly more over the long term. I certainly would never consider recommending them again and I will be moving the few clients that remain.

    We do have a choice.

  5. Whats the point of taking steps to save significant amounts of money by providing an inferior product. I cannot begin to think how much of their AUM has disappeared over the last 12 months!

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