Aegon UK sales up 3% despite global loss

Aegon saw UK life and pensions sales climb 3% during 2008, despite generating a €181m loss globally.

Across the world, Aegon made a net loss of €1.2bn during the final quarter of 2008, blaming reserve strengthening and deferred acquisition costs in the US.

In the UK, new life and pensions business climbed to £1.2bn, with £289m in the final quarter, a 5% increase.

However, underlying earnings before tax fell by £13m in Q4 due to the effects of lower equity and corporate bond markets and their impact on fund related charges.

Asset management and pensions business made an £8m loss, while life and protection business made a profit of £18m, though this had fallen £3m compared with the previous three months.

Pensions sales fell 2% in the final quarter. Aegon says lower individual pension sales are largely to blame, with strong group pensions and unit-linked bond sales helping to boost revenues.

Annuity sales were the strongest of the firm's core operations, climbing 21% during the year, while individual protection new business was up 10% to £52m.

Otto Thoresen, chief executive of Aegon UK, says: "Aegon UK has continued to deliver increased levels of profitable new business, despite very challenging market conditions.

"We are pleased with what we achieved last year, with growth in the core areas of group pensions, annuities and protection. Our diversified product range brings resilience to the potential for new business growth."

Contact: John Bakie, Tel: 020 7484 9805, e-mail: John.Bakie@incisivemedia.com