Aegon has struck a deal with Jardine Lloyd Thompson Benefit Solutions which will see JLT provide ongoing services to Aegon’s defined benefit schemes and 100 Aegon staff move to JLT.
The portfolios involved in the agreement have a value of around £710m, with 25,000 members.
JLT Benefit Solutions chief executive Duncan Howorth says: “The ongoing provision of services to defined benefit schemes is central to our strategy as the market continues to consolidate. DB schemes need the support of firms that continue to invest in this activity, while the arrangement allows Aegon to continue to develop its business model for the future.”
Aegon chief executive Adrian Grace says: “Our partnership with JLT delivers a strong solution for our clients and their advisers. The agreement provides for continuity of employment for our staff and the maintenance of services for our clients.”
Last month, JLT announced the acquisition of Alexander Forbes’ employee benefits business, Alexander Forbes Consultants and Actuaries, for £17m.
AFCA became part of JLT’s Employee Benefits business, boosting its presence in the health and wellness, risk, wealth management, annuity and investment areas.
Radcliffe & Newlands chartered financial planner Mel Kenny says: “This is a case of Aegon getting rid of something it is not very good at and passing it to JLT, which has strengths in this area. It does make you wonder if Aegon is passing on anything which may have liabilities attached.”
Quainton Hills Financial Planning director Gordon Bowden says: “If Aegon does not see this part of the business as central to its future plans, then it makes sense to sell it off to a firm that can make it work.”