Pension firm earnings fall

UNDERLYING earnings for Aegon UK plunged £6 million into the red during the final quarter of 2010, according to its latest results.

The life and pensions firm attributed the majority of the losses to a 25m payout to customers resulting from a glitch in its policy records.

But higher policy costs, "adverse mortality results" and losses in distribution business were also factors.

Chief executive Otto Thoreson said sales figures for the year were up by one per cent to 907m on the previous year.

The firm is trying to cut 380m of costs from the business and around 600 jobs.

So far 242 jobs have gone including 57 in Edinburgh.