Instead, third party pension administration and employee benefits software businesses will shut up shop to save the company money.
In June Aegon announced plans to restructure and refocus its business in the United Kingdom. The firm said the closures announced today are in keeping with its aim to sharpen its focus on the at-retirement and workplace savings markets and reduce operating costs by 25%.
Earlier this month, the company announced the closure of its group risk business, its withdrawal from the bulk annuities market and the reorganisation of the company’s UK sales division. This reorganisation will result in a net reduction of 106 roles.
Today Aegon announced further “streamlining” of its management and organisational structure which it said would result in the loss of a number of senior management roles over the course of the year.
It plans to begin formal consultation with Aegis and Unite, the trade unions that represent its staff in the UK, regarding the impact of planned restructuring measures on employees and consequently, was unable to disclose the number of positions affected.
Aegon’s UK chief executive, Otto Thoresen, said: “The decisions we have announced today follow a thorough review of our businesses and how they fit with our new strategy announced in June. Our new approach will see Aegon concentrate on the At Retirement and Workplace Savings markets, which are already positions of strength for us in the UK.
“It’s important that we continue to move forward with our restructuring programme to create a more efficient business, improve returns and ensure our long term success.”
Peter Chadborn, director at IFA firm CBK Colchester, said: "It is encouraging to see Aegon bucking the trend and remaining committed to protection. It makes sense for a provider with a reputation for specialising in the At Retirement space to focus their protection experience in this area because IFAs prefer to deal with providers who specialise rather than spread themselves too thinly."
And industry consultant, Kevin Carr, said: “We welcome the news that Aegon will remain committed to the UK protection market. Intermediaries need choice and differentiation amongst providers and with so many potential mergers it is good for the market to keep as many strong players as possible.”
