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PosSol and Origen eradicate losses after cost savings boost
by Jun Merrett on Feb 15, 2013 at 07:38
National IFAs Origen and Positive Solutions have eradicated losses thanks to the impact of cost-saving measures, parent Aegon has reported.
The two groups have reported a combined nil profit for the last three months of 2012, compared to a £2 million loss over the same period in 2011. In the third quarter of last year they lost £1 million.
Aegon said the improvement in performance was due to cost savings, including streamlining the businesses and implementing changes in preparation for the retail distribution review.
Aegon UK's overall performance jumped, with underlying earnings before tax hitting £20 million for the last three months of 2012, compared to a £22 million loss during the equivalent period in 2011. This was due largely to compensation payouts following pension administration failings coming to an end.
Earnings for its life business stood at £17 million for the fourth quarter of 2012, compared to £30 million over the same period in 2011, when 'one-time benefits' including the closure of its defined benefit scheme boosted figures.
Aegon UK’s new life sales increased 53% to £247 million, up on the £161 million in the fourth quarter of 2011, boosted by strong growth in group pensions and increased adviser flows onto the Aegon Retirement Choices platform, powered by Novia.
The company said its pensions earnings were helped by the successful implementation of its cost reduction programme in the UK.
That programme helped reduce operating expenses from £98 million in the fourth quarter of 2011 to £69 million for the last three months of 2012.
Aegon launched its cost saving programme in June 2010 in which it cut £80 million from its annual spend and just under 1,200 jobs across the UK.
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