Aegon’s distribution arms Positive Solutions and Origen reported flat profits for the second quarter while the provider’s UK earnings before tax rose to £20m, up from £9m for the same period in 2011.
The distribution arms had made a £1m loss in the first quarter of this year, following combined losses of £6m in 2011 and £5m in 2010.
Aegon’s pension earnings were £5m, compared to a loss of £7m for the same quarter in 2011, which would have been impacted by the ScotEq redress programme. Compared to the first quarter of this year pension earnings dropped 55 per cent from £11m.
Life earnings were £15m, a 12 per cent drop on the same quarter in 2011 and matching the £15m in the first quarter of this year.
Overall earning were helped by a cut in operating expenses, which fell 37 per cent to £69m, following the provider’s cost-cutting programme.
Aegon chief executive Adrian Grace says: “The RDR and pensions reform will transform pension products and services and how they are distributed. Aegon’s platform offers a compelling solution to advisers, employers, and their employees.”