Aegon sees off rivals to secure prize BP investment contract

Published on Monday 14 December 2009 20:26

AEGON UK has secured one of its most significant contracts in the last few years after oil giant BP handed control of its defined contribution (money purchase] pension plan to the Edinburgh firm.

BP will close its final-salary pension scheme for new UK employees from April next year, leaving Aegon to provide the plan to new recruits. BP employs 90,000 staff worldwide including 16,000 in Britain.

Aegon said there will be a range of investment options for the new employees to choose from.

Duncan Jarrett, sales director at Aegon, said: "This is an excellent new business win, following a tough competitive selection process.

"This is clear recognition of our long-standing experience within corporate pensions, our systems and capability."

Feilim Mackle, executive director, life and pensions operations, said: "The new defined contribution scheme has been designed to ensure that BP's benefits package continues to meet both employee and business needs. We are looking forward to partnering BP as they move forward with this."

Aegon UK has assets under administration of 44.2 billion and employs more than 4,900 staff.

Pensions experts expect more final-salary schemes to be closed, creating a huge opportunity for the life and pensions sector in the next few years. The BP contract was deemed to be among the most keenly fought and Aegon faced a line-up of blue chip rivals.