Aegon reports second quarter recovery

Aegon UK contributed to a more positive second quarter for the Dutch insurance group but Positive Solutions and Origen lost a further £2 million.

Aegon UK saw underlying earnings rise 13% to £18 million in the second quarter but Origen and Positive Solutions continued to lose money.

Net income in the UK rose 41% to £24 million from a year ago with life and pensions new business up 25% to £263 million.

Earnings from life and protection increased to £15 million due to an increase in the size of the annuity book and the expenses related to the closure of the employee benefit business in the second quarter last year.

However Aegon’s distribution businesses Positive Solutions and Origen posted a second quarter loss of £2 million, in line with the performance a year ago, despite benefitting from improved business performance and market conditions.

Pension earnings also decreased to £5 million as business growth and improved equity and credit markets were offset by higher expenses associated with investments in developing new propositions.

The overall Aegon group reported underlying earnings before tax of €522 million (£429 million) for the second quarter. The Dutch life company saw its net income rise to €413 million and impairments fall to €77 million, a two-year low. New life sales reached €590 million with the value of new business amounting to €148 million.

Aegon UK chief executive Otto Thoresen (pictured) said Aegon was committed to the restructuring of its UK operations, announced earlier in the year. ‘We have seen improved new business and earnings growth this quarter which reflects higher stock market levels and increased new business in both corporate and individual pensions markets,’ he said.

He added: ‘Our challenge in the months ahead is to refocus and restructure our business to ensure we have the right business model to deliver our new strategy, which will ensure continued success for Aegon UK in the long term.’