Aegon's £80m cost-cutting sees top names leave

• The pair have 47 years combined experience at the company

Peter Williams, head of industry development, is to step down in March after 34 years with the Edinburgh-based insurer, while Rachel Vahey, head of pensions development, will part company with Aegon in April after 13 years at the group. Francis McGee, head of corporate affairs, is also leaving, as announced last year.

The departures result from a shake-up in which three teams, covering regulation, pensions development and corporate affairs, are folded into a single regulatory analysis and political affairs unit.

The change is part of an ongoing restructure that will see the Dutch-owned insurer cut costs by a quarter, or 80m, by the end of 2011. The initiative has already resulted in 242 posts being axed, including 57 in Edinburgh.

It had previously announced the closure of six of its 12 sales centres, including the Edinburgh sales office, with 142 staff across the UK being made redundant.

An estimated 600 posts are expected to have been cut in Aegon's Edinburgh head office by the end of the process.

The new team will be led by Steven Cameron, currently head of business regulation. Cameron, will report to Rob Waller, director of strategy.

Waller will answer to Clare Bousfield, chief financial officer, who joined from Swiss Re last September and is responsible for strategy.

The new regulatory strategy team will focus on "at retirement" and workplace savings, the firm's two target markets under the restructure, first set out last June.

Bousfield said: "Having the best possible understanding of the changing regulatory landscape is key to our strategy development and delivery. At the same time, it's important that we maintain an ongoing dialogue with the government, regulator and other key stakeholders within our industry.

"I'm delighted that Steven will be leading this work as part of our strategy team and I'm looking forward to working with him."I would like to thank Francis, Rachel and Peter for their valuable contribution to AEGON over the years and we and wish them every success in their future careers."

Tom McPhail, head of pensions research at Hargreaves Lansdown, said: "Aegon is going through a tough time and on the pensions and public affairs front over the past couple of years they have lost some heavyweights such as Stewart Ritchie, Francis McGee and Rachel Vahey, which is bound to have an impact."

McPhail said Cameron was "widely respected and will undoubtedly do a very good job".

He added: "The challenge for the business will be to demonstrate to their clients and business partners that they have found a new equilibrium and that they are once again in a position to develop and build the business."

Williams joined the group in 1977 and has most recently directed its preparations for the retail distribution review, the reform of the advice market coming into force next year.

He also chairs the Chartered Institute of Insurance's qualifications, examination and assessment Committee and will continue to do so after leaving Aegon.

The announcement comes a month after Aegon was fined 2.8 million by the Financial Services Authority (FSA) after a series of administrative errors by Scottish Equitable, its life and pensions brand, left thousands of customers out of pocket.

It is also paying out 60m in redress to customers who lost money as a result of some 300 administration issues dating back to the early eighties.