Aegon makes more cuts to UK business

DUTCH insurer Aegon will close two more operations in the UK and cut jobs to improve profitability in its fourth-largest market.

Aegon, which warned in June it planned to cut 25 per cent of its British costs in the coming year, said it will close its third-party pension administration and employee benefits software businesses.

The divisions currently employ 89 people in London and Cheshire, but the firm said it would not decide on job cuts until it had consulted with trade unions.

A spokesperson for the company could not say how much the closures would save the company, but said that before today’s announcement the firm had made £22m savings out of a £80m target before the end of 2011.

Aegon earlier this month announced a reorganisation of its British sales division, which will cost 106 jobs. The firm said in yesterday’s statement that more senior roles face the chop in its surviving UK business, which includes life insurance and protection operations and Guardian Financial Services.

Aegon is one of the top life insurers in the United States, where it owns Transamerica.