Aegon UK reports life and pensions business down 24%

Aegon UK reports new life and pensions business of £706m for the first nine months of the year, a fall of 24% compared to the same period in 2008.

Value of new business (VNB) for the period also suffered at £29m, down 36% compared with last year.

Life and pensions new business volumes slipped 2% to £218m quarter on quarter as lower group pensions new business was partially offset by improved annuity and personal pensions sales

Underlying earnings, excluding a £38m exceptional charge for improvements to customer records, were £27m for Q3, up 59% on Q2 and in line with Q3 results last year of £28m.

Aegon's asset management business fared better, boosted by two large mandate wins of £227m and £160m, with total new business flows of £491m.

Revenue-generating investments reflecting the total funds under management for Aegon UK hit their highest level to date at £54.2bn.

Aegon UK chief executive, Otto Thoresen says: "This is a sound underlying third quarter performance given the continuing challenging economic conditions affecting new business flows across the UK life sector.

"I am particularly pleased that the progress we have achieved in our asset management business in recent years has resulted in some important new business wins and recognition of our improved strength in this market, with funds under management reaching our highest level to date.

He says Aegon is well placed to benefit from the economic recovery.

"Pensions and retirement issues will feature heavily in the political agenda as we approach the general election and this presents an important opportunity for the long term savings industry to help people better understand the need to make the right financial plans for their future," he adds.