Aegon well set for industry’s new regime

LIFE and pensions group Aegon UK has insisted it is well placed to cope with the new regulatory landscape after seeing its second-quarter profits more than double.

The Edinburgh-based firm said underlying earnings before tax rose to £20 million in the second quarter, up from £9m a year ago.

Earnings were also helped by lower operating expenses, which fell 37 per cent to £69m following a cost-cutting programme that has seen hundreds of jobs lost.

Last month, the group said 350 staff were transferring to outsourcing specialist Serco in a £150m deal to administer its protection business.

Chief executive Adrian Grace said Aegon was in a good position to benefit from changes such as the retail distribution review (RDR), which will ban the payment of commission to financial advisers.

He said: “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.”

New life sales dipped to £170m, from £191m in the first quarter, but the group said this was in line with expectations.

Despite the rise in UK profits, Aegon’s Dutch parent company saw its second-quarter net profits fall by more than 50 per cent to €254m (£200m) after it took a €265m charge related to unit-linked insurance policies in the Netherlands.