Aegon UK is withdrawing from the group risk market which it has said has limited prospects and lack of profitability for its business.
The firm, which also offers pensions, life insurance, asset management and financial advice, will cease to provide group life, group critical illness and group income protection products to employers as of today.
Aegon UK said that the market for these products is generally mature and dominated by a few large providers, stating that it has a sub-scale in-force business with limited prospects to achieve sufficient economies of scale.
It will instead pursue growth opportunities in more profitable business segments such as pensions, individual protection, investments and annuities.
A statement posted on the firm’s website said: “We’re committed to making sure that both advisers and our customers are treated fairly and kept informed as we wind down our business over the next 24 months. Our claims process remains unchanged for both new and existing claims.”
In addition Aegon has said it expects the closure of its group risk business in the UK to positively impact future earnings and value of new business.
Full details of the support it will provide is available on its website at http://www.aegonse.co.uk/eb>