Aegon UK set for reshuffle at top

SPECULATION is mounting that the head of the UK arm of Dutch insurance giant Aegon may step down as early as this week as part of a management reshuffle.

The Scotsman's sister publication, Scotland on Sunday, yesterday revealed that sources in the Edinburgh financial community said it was likely Otto Thoresen would be replaced by chief operating officer Adrian Grace, who is overseeing a major overhaul of Aegon UK.

The Dutch group, which bought Edinburgh-based Scottish Equitable for 725 million in 1994, has declined to comment on what it called "market speculation". But some believe an announcement on the succession could come by Friday.

Thoresen, seen as one of the great and good of the UK insurance industry, succeeded David Henderson in 2005. But there have been rumours about him stepping down earlier than his retirement date since Aegon announced plans to reduce costs and refocus the business.

Analysts said yesterday that Thoresen, a Scot born to a Norwegian father, had turned Aegon UK from a top ten to a top three provider of life and pension products. He also chaired a year-long review on behalf of the government on how a national financial advisory service could be run.