Life insurer and asset manager Aegon has announced today the sale of its UK individual protection book to Royal London.
The transaction will support Aegon’s ongoing strategy to focus on the core Retail and Workplace platform activities in the UK, as part of the firm’s ambition to create leading businesses in its chosen markets.
Under the terms of the agreement, Aegon UK will also reinsure the portfolio to Royal London, which will be followed up by a Part VII transfer of the legal ownership of the individual protection book in 2024.
The transfer is subject to court approval.
As a result of the sale, some 400,000 of Aegon’s customers will see their life insurance, critical illness and income protection policies transferred to Royal London.
Financial terms of the agreement are currently undisclosed.
Further, the transaction is also 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.
Earlier this year, Aegon’s shareholders approved a move to combine certain of its Dutch businesses with insurer a.s.r.
