From Aegon’s perspective, it is good news. They have seen an increase in pension annuities and protection business, and they are looking to further increase their market share and strengthen their position in these markets in the future.
Otto Thoresen, chief executive of Aegon UK, said while historically Aegon’s market share had been strongest in pensions and perhaps less strong in pension annuities and protection, it had been steadily growing this newer side of the business recently.
They believe they have got more progress that can be made and if they build a stronger market share in these segments then obviously that means they are gaining a position for the business overall.
Aegon’s third quarter results saw its UK earnings for the quarter drop by 37 % compared to the same period last year. In 2007, third quarter earnings stood at £45m compared with £28m in the third quarter of 2008.
Aegom witnessed an earnings fall in the first nine months of the year by over a quarter from £138m in 2007 to £100m in 2008.
Individual pension annuity business for the first nine months increased by 11 % to £118m compared to the previous year and individual protection new business rose 15 % to £39m compared to 2007.
For the benefit of retirees we hope Aegon can continue to offer some of the best annuity rates in the market.
