Aegon's net income fell 2% in the first half of this year, as higher underlying earnings were offset by losses on hedges due to rising equity markets and volatility - and an £18m loss on the sale of Positive Soltuions.
Net income fell to 243m euros (£209m) across the group, dragged down in part by a net loss of £3m for the UK business, which suffered due to "business transformation costs" and the sale of distribution arm Positive Solutions which resulted in an £18m loss.
However, new life sales were up by 45% to £247m in the UK, driven by auto-enrolment and strong platform and group pensions sales, with the platform growing at more than £100m a month.
UK earnings from the life business increased by £23m, driven by improved mortality in annuities and individual protection - though earnings from pensions declined to nil.
Aegon distribution arm Origen is being transformed into a tied agent network following the introduction of Retail Distribution Review.
Aegon chief exectuive Adrian Grace said: "We are making significant progress on our strategy of focusing on the workplace and at-retirement segments of the market. Underlying earnings are up to £23m for the quarter.
"We continue to divest businesses that are non-core to our future, such as Positive Solutions in the second quarter. We are also building and diversifying our workplace distribution capability and are delighted to have partnered with Mercer and Barclays in the first half of the year."