Aegon UK seeing the benefit of its product diversification strategy to grow new business
Steady start for life and pension provider in tight market
Published:
Aegon UK has announced a solid 2008 first-quarter performance with new life and pension business matching the same level as the first quarter of 2007, despite tougher market conditions.
The Edinburgh-based insurer said it continued to benefit from its product diversification strategy with growth in individual protection, its annuity business, and in corporate pension activity. The value of Aegon UK’s new business, a key measure of profitability, rose by 3% on a year earlier to £39.8million, but operating earnings fell by 23% to £34.3million, reflecting weaker stock markets.
The company’s new life and pension business was £288million, with corporate pension business increasing by 22% compared with the first quarter of 2007.
Key development areas saw continued momentum. Individual annuities new business rose by 13% to £342million in single premiums, and two years after entering this market, Aegon is now established as a key player.
Individual protection increased strongly, with new business up 17% to £12.7million in annual premiums. New business levels for individual pensions were down 5% at £60.8million in annual premiums.
Otto Thoresen, Aegon UK’s Buckie-born chief executive, said: “We are now seeing the benefits of our product diversification strategy, with excellent growth in annuities and protection.
“The breadth of our proposition means our business is more resilient when volatile stock markets bring nervousness to the retail investment market.
“This will be a more challenging year but I am confident that Aegon has the right proposition to build on the significant achievements of recent years.”
Aegon UK has assets under administration of £52.3billion and employs about 4,500 staff. It is part of the Dutch insurer Aegon, one of the world’s largest listed insurance groups with total assets under management of £245billion.
