Employer switch follows review
Aegon outsources 800 Edinburgh admin jobs to Atos
The move is part of a 15-year contract to service and administer business for about 1.4 million customers with a multitude of policy types.
All jobs will remain in Edinburgh, providing assurances to staff that a review of the business could have led to the work being switched overseas.
Adrian Grace (pictured), chief executive of Aegon UK, based at the Gyle, said: ‘It’s important that as the financial services market evolves we continue to provide customers with an excellent service, stability and help them achieve a lifetime of financial security.
“Building on our established and already successful relationship with Atos will give continued momentum to our existing business. This is an important step in our strategy and is in the best interests of our customers, employees and shareholders.”
Atos has serviced and administered Aegon’s 500,000 protection customers since 2016 and the same teams will remain in Edinburgh, and will provide continuity of service.
Aegon said the teams will also benefit from Atos’s ambition to win similar contracts from other providers and develop an Edinburgh-based centre of excellence in administration of life and pensions business.
Adrian Gregory, CEO of Atos UK&I, said: “We are delighted to deepen our partnership with Aegon with this agreement. We look forward to working with the Aegon team.
“This agreement also highlights the increasing footprint and ambition of Atos in providing business transformation expertise to the life and pensions market and the broader financial services sector.”
Aegon will continue the administration and servicing of all platform policies and schemes across Aegon Retirement Choices (ARC), Aegon Platform (previously Cofunds and Investor Portfolio Service),TargetPlan (previously BlackRock), Aegon One Retirement, Retiready and our Institutional platform. These services are on platform and are unaffected by this announcement.
The agreement is expected to lead to annual run-rate expense savings for Aegon of approximately £10 million initially, growing to approximately £30m over time. Total transition and conversion charges are estimated to amount to approximately £130m, and are expected to be recorded over the first three years of the agreement.
Brian Linn, General Secretary of Aegis the Union said: “We are encouraged that Aegon’s review of existing business has resulted in a solution which guarantees the future of the Edinburgh site and provides opportunities for growth with a commitment to no offshoring of jobs.
“Our first impression is this is very positive news for our members regarding their job security and career development.
“We look forward to working with Aegon and Atos to ensure that our members interests are promoted and protected during this consultation period and beyond.”