Edinburgh-based financial provider Aegon UK goes hybrid as operating profits strengthen

Aegon UK, the Edinburgh-based financial provider, has reported increased profits thanks to new business wins and “favourable” equity markets.

The Dutch-owned group, which has about 2,000 people working in the Scottish capital, posted an operating profit of £158 million for 2021, up from £128m the year before. The result for the closing quarter of last year rose by 45 per cent to £42m, year on year.

Mike Holliday-Williams, chief executive of Aegon UK, pointed to “positive” inflows of business during the quarter and over the course of 2021 as the group invested in its platforms and attracted new clients.

He also noted that the business, which has a large base at Edinburgh Park, was adopting a “fully hybrid and fully flexible” working model in the wake of the pandemic with about 50 per cent of staff expected to be office-based over time.

Aegon UK with its Edinburgh Park offices is a major capital employer with some 2,000 people in the city. Picture: Greg Macvean

On the sales front, the latest quarterly figures showed net inflows amounted to £9.2 billion, compared with net outflows of £3.7bn in the fourth quarter of 2020.

Aegon group chief executive Lard Friese said: “Our fourth quarter 2021 results demonstrate our progress in achieving our financial and strategic objectives.

“Our operating result for the quarter decreased only slightly, despite adverse claims experience mainly due to Covid-19, as it was supported by increased fees from higher equity markets and a positive contribution from business growth.

“We continued to invest in the expansion of our distribution network, while simultaneously improving the digital experience for customers, advisers, and employers.

“Looking ahead to 2022, we will continue to make progress on delivering on our strategic objectives.”

A message from the Editor:

Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions