Main Menu

Deal leads to £30m loss

Aegon sells bulk of annuity portfolio to Rothesay Life

Adrian GraceAegon is selling two-thirds of its UK annuity portfolio to specialist insurer Rothesay Life for an undisclosed sum.

The Edinburgh-based business will reinsure £6 billion of liabilities to Rothesay Life, with the transfer process taking place over two years. Aegon will continue to make annuity payments to customers on behalf of Rothesay during this time.

Aegon expects the reinsurance deal to lead to a loss of around £30m, which will be reflected in its second quarter results. Cash flows from its UK operations will be reduced by around £35m.

It says it has not been active in the UK annuity market since 2010 and the sale will allow it to focus on its platform. It plans to sell the remaining stake in its annuity book in due course.

Chief executive Adrian Grace said: “Following a review of our annuity portfolio last year we are delighted to announce the sale of the majority of our annuity book.

“The sale marks a huge milestone for Aegon and today’s deal gives us the impetus to continue growing our platform and protection business.”

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.