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Thoresen says A-Day pension sales boost could last for years

Aegon UK chief executive Otto Thoresen says A-Day could help drive pension sales for two or three years.

He expects to see the current business momentum continue in the second half of this year and into next year and beyond. Aegon UK saw a 55 per cent increase in life and pension business in the first half of this year compared with the same period last year.

Individual pension new business nearly doubled to 148m, on an annual premium income basis.

Thoresen says it is difficult to analyse how much of this business increase is new money and how much is churn.

He says although A-Day has been the key driver of growth in pensions business, the rise is also in part due to renewed confidence in the stockmarket and a greater number of people approaching retirement age.

Underlying earnings in the first half rose by 26 per cent to 86m from 68m.

Thoresen says: “It is difficult to predict how long the effects of A-Day will last, as there is clearly a lot of advisory activity to carry out. I would expect there to be strong momentum in the second half of the year but we could continue to feel the effects for two to three years.”

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