Aegon to decide future by October; half year life sales up 8%

Aegon’s life and protection earnings leapt by 83% in the first half of the year while its sales grew by 8% compared to the same period in 2009.

And COVER has also learned that the provider expects to reveal its future in the UK protection market by the end of September, having announced a review of the whole of its UK operation in June.

Its life and protection second quarter earnings fell 17% to £15m from £18m in the first quarter of 2010, but this first half total of £33m, up from £18m during the first six months of last year is a growth of 83%.

And new life sales for the quarter grew 12% on the previous three months to £263m (£235m), with the overall figure of £498m being an 8% gain on last year (£436m).

Overall, UK earnings fell 28% in the quarter to £18m from £25m in the first three months of the year, but this half year total was an increase of 72% to £43m from £25m in the first half of 2009.

The insurer also explains the purpose of its review into UK operations is to "re-focus its UK life and pensions business on two core markets - at retirement and workplace savings - and to reduce operating costs 25% by 2011."

"Plans to deliver this expense reduction program are currently under development and further detail will be announced later this year," it adds.

Alex Wynaendts, CEO of Aegon, confirms the importance of the review to the group as a whole.

"We are implementing a number of key measures, as announced in June, to sharpen our focus on our core activities and improve returns, particularly within our business in the United Kingdom," he says.