Aegon, one of the world’s largest life insurance and pension firms, is to close its third party pension administration and its employee benefits software businesses.
The company yesterday announced the closures as part of a review of its UK businesses, which began in June. The third party pensions administration business is part of its Trustee Solutions business unit employing 82 staff based in Daresbury, Cheshire. Aegon Benefit Solutions employs seven staff based in London. The company said the two businesses were not core to its future proposition.
UK chief executive Otto Thoresen said the company aimed to sharpen its focus on the at-retirement and workplace savings markets and reduce operating costs by 25%.
” At-retirement and workplace savings are already positions of strength for us in the UK. It’s important that we continue to move forward with our restructuring programme to create a more efficient business, improve returns and ensure our long term success,” he said.
The restructuring includes streamlining management and the organisational structure by 2011, with the consequent loss of a number of senior management roles.
The company said it would begin formal consultation with Aegis and Unite, the trade unions that represent its staff in the UK, regarding the impact of planned restructuring measures on employees.
Aegon has already closed its group risk business, withdrawn from the bulk annuities market and reorganised its UK sales division. This reorganisation, announced earlier this month, will result in a net reduction of 106 roles.
The company has some 28,000 employees worldwide and 40 million customers in the Americas, Europe and Asia. Its revenue generating investments totalled EUR 409 billion at 30 June 2010.
Source:http://www.hrmagazine.co.uk/News/MostEmailed/1031857/Aegon-closes-third-party-pension-employee-benefits-software-businesses/
