Aegon has announced it will be closing its third-party pensions administration and employee software businesses as part of efforts to reduce operating costs by 25%.
Following a review of its UK businesses Aegon has decided to keep its life insurance and protection businesses because they support its aim to focus on the at-retirement market. In addition, the insurer will retain its closed book of business of Guardian Financial Services.
A broad range of cost-saving measures will be introduced across Aegon’s UK businesses, which will result the loss of a number of senior manager roles and changes to reporting lines.
Aegon will be in consultation Aegis and Unite, the unions that represent its staff in the UK.
Otto Thoresen, chief executive of Aegon UK, said: “Our new approach will see Aegon concentrate on the at retirment and workplace savings markets, which are already positions of strength for us in the UK. It’s important that we continue to move forward with our restructuring programme to create a more efficient business, improve returns and ensure long-term success.”
For more articles on workplace pension providers