The Hague February 14, 2019
In the United Kingdom, Aegons platform offering and omni-channel distribution strategy have established
Aegon as the leading platform provider in the market with a personal and workplace pension, investment, and protection offering. In the second half of 2018, assets across Aegon UKs platform business reached GBP 128 billion. The first half
of 2018 saw the migration of two portfolios of the Cofunds business by moving GBP 57 billion of institutional assets to Aegon technology in March, followed by GBP 28 billion of retail assets in May. A program was established to address
service issues associated with the retail migration. Core trading and service levels have now returned to target levels. The focus now is to continually improve the platform, further increasing functionality and ease of use.
The final phase of the Cofunds integration will take place in the first half of 2019 with the migration of assets related to Nationwide. To date, Aegon has
realized GBP 40 million annualized expense savings from integrating the Cofunds business, a figure which will rise to GBP 60 million following the Nationwide integration.
The digitization of Aegons protection business in the United Kingdom in the first half of 2018 has made it simpler and quicker for advisers to apply for
cover for their clients and has led to a significant uptick in business, with new protection customer numbers up 36% in 2018 compared with the previous year.
Aegon announced on November 20, 2018, that it had strengthened its existing partnership with Atos, signing a
15-year
contract to service and administer its Existing Business
(non-platform
customers) in the United Kingdom. The extension of the partnership will further improve
customer service for 1.4 million customers. Since 2016, Atos has successfully serviced and administered Aegons 500,000 protection customers in the UK, and has an excellent understanding of Aegons business, culture and ways of
working. The agreement, to be effective as of
mid-2019,
is initially expected to lead to annual
run-rate
expense savings for Aegon of approximately GBP 10 million,
growing to approximately GBP 30 million over time. Total transition and conversion charges are estimated to amount to approximately GBP 130 million, and are expected to be recorded over the first three years of the agreement.
Consistent with Aegons strategic objective to optimize its portfolio and capital allocation across its businesses, Aegon has successfully completed the
sale of its businesses in the Czech Republic and Slovakia for EUR 155 million on January 8, 2019. This is a further step in rationalizing Aegons geographical footprint and focusing resources on Aegons key markets.
On December 21, 2018, Aegon expanded its partnership with Banco Santander in Portugal. The transaction with Banco Santander in Portugal comprises the
life and
non-life
in-force
books owned by Banco Popular within the scope of the partnership and generated by the Banco Popular franchise as well as other channels
(mainly agents and brokers). In addition, it includes the life and
non-life
new business within the scope of business of the partnership distributed through the former Banco Popular franchise, which Banco
Santander acquired in 2017. Aegon has paid an upfront consideration for the expansion of the partnership in Portugal of EUR 14 million and will pay an additional amount of up to EUR 6 million, depending on the performance of the
partnership.
Asia
In India, Aegon Life launched a
new guaranteed return insurance plan, called POS GRIP (Point of Sale Guaranteed Return Insurance Plan). The product is in line with Aegons philosophy of launching simple, easy to understand products. POS GRIP provides dual benefits of
protection and savings. The benefit which a customer will receive at the end of the policy term is guaranteed and is stated
up-front
when buying the policy. The guaranteed additions accrue at the end of every
year throughout the policy term and include a
one-off
loyalty booster payable at the end of the policy term.
In
China, Aegon THTF launched an upgrade of its award-winning platform for agents that was unveiled in October last year. The platform features professional marketing, smart recruitment, and differentiated service, serving as the smart personal
assistant to agents. Aegon THTF has been increasing investments into digitalization in pursuit of its digital development strategy.
2H2018 Results - 4