Aegon announces today the sale of its UK individual protection book to Royal London. The transaction supports Aegon’s strategy to focus on the core Retail and Workplace platform activities in the United Kingdom, as part of the ambition to create leading businesses in its chosen markets.
Under the terms of the agreement, Aegon UK will initially reinsure the portfolio to Royal London, followed by a Part VII transfer of the legal ownership of the individual protection book in 2024. The transfer is subject to court approval.
Aegon UK’s individual protection business is a portfolio of life, critical illness, and income protection policies for 400,000 high-net worth individual customers, that was sold via independent financial advisers. The portfolio will close to new business on April 4, 2023.
Royal London is the UK’s largest mutual life, pensions, and investment company, offering protection, long-term savings and asset management products and services.
Financial terms of the agreement are undisclosed. The transaction is not expected to have a material financial impact on the capital position and operating capital generation of Aegon UK and its main insurance legal entity, Scottish Equitable Plc.