'Our commitment to the UK is very clear' says Aegon chief

But he stressed that the life and pensions firm "needs to make money" as it continues its 80 million UK cost-cutting programme and looks to capture an upturn in business as more baby boomers hit retirement.

In February, the company announced plans to raise €900m (796m) in a share issue and it is still trying to sell its American reinsurance business for an estimated €1.6 billion in an effort to pay back in full a Dutch government bail-out by June.

Wynaendts, who was in Edinburgh to meet staff to explain the firm's strategy, said Aegon could make the €2.25bn payout through "internal resources" if the sale of Transamerica Re does not meet the deadline.

He added that the firm's €5bn US business was one third smaller than three years ago, while The Hague-based parent company had also "significantly cut its costs".

Aegon UK has experienced continual upheaval, including plans to cut as many as 600 jobs in Edinburgh, where it currently has some 2,400 staff.

The cost-cutting drive is being overseen by Adrian Grace, the newly installed chief executive of the UK business who took over just days ago, replacing Otto Thoresen - now chief executive of industry body the Association of British Insurers.

Wynaendts, 50, said: "I keep saying to Adrian, we are very committed but we have a clear agreement. We need to get the returns up and the costs need to come down.

"We are on track which is a good thing. And what is more positive is it has not affected sales. We probably should have done it earlier but it is good to do it now.

He added: "Our commitment to Aegon UK has been very clear. We have looked at all the different options for the business. Our commitment is to build on the strengths and focus on specific areas - 'at retirement' and workplace pensions - to stop being a little bit of everything to everybody, and at the same time make sure we are achieving the returns we need to achieve.

"The only way to achieve these returns is to take a significant amount of cost out."

In 2010, Aegon UK saw a "significant improvement" in its net profit to 72m, while operating expenses declined 6 per cent during the year to 390m.

In February the firm said it slashed 33m from its budget last year.

Wynaendts added yesterday that there was a "great opportunity" for the group in the UK.

"The workplace is going to be more important and the 'at retirement' market is just beginning to grow," he said."In these areas we have at least double-digit market shares and they are areas where we can bring our global experience to work."

He pointed to the launch of the firm's "wrap platform" as a sign the group was investing in the UK for the long term. Last month, Aegon announced a partnership with Bath-based firm Novia Financial which will provide administration services when the wrap product is launched later this year.