Aegon UK has hit record operating earnings and new business volumes, according to its six-monthly report.
Operating earnings have grown to £93m, a 23% increase on the same period last year while new business volumes have hit £78m, a 48% increase on the first six months of 2006. Net operating earnings for the second quarter rose 89% on the same period last year to £68m.
New business for Aegon UK’s life and pensions businesses reached £606m, an increase of 21% over 2006. The provider bases the figure on new annual premiums plus one-tenth of new single premiums (API).
New business volumes for the second quarter rose 26% to £39m, an £8m rise on the same period last year. The internal rate of return (IRR) on new business grew to 12.8%, an increase on 11.5% in the second quarter of 2006.
Non-pensions business rose 34% in the first half as the provider moves from regular premium business towards more single premium business.
Annuity sales took life and protection sales in the second quarter to £46m, a 10% increase on the second quarter of 2006. Life and protection operating earnings for the second quarter hit £15m, up from £4m in the same period last year.
Meanwhile, individual pensions rose 39% on the first six months of 2006 to £206m API and individual annuities rose 49% to £60m API. New business for onshore bonds rose 49% to £30m API.
Individual pension and investment bond sales drove pension sales in the second quarter to £262m, a 9% increase on the same period last year. Retail mutual fund and managed assets sales reached £192m, a rise in £226m last year.
Aegon asset management’s retail funds grew 39% in the first half to £311m. In particular, the Ethical Equity fund attracted £42m of new business, up from £8m in the same period last year.
However, second quarter pension and asset management operating earnings fell £3m from the same period in 2006 to £32m.
Otto Thoresen, Aegon UK’s chief executive, says: “Aegon’s life and pensions strategy is increasingly focused on propositions that reduce risk for our corporate and individual customers. In individual annuities we have reached a top three market position from a standing start eighteen months ago.”
Life insurance gross premiums rose 29% in the second quarter to £1,937m. Pension and asset management premiums rose 29% on the same quarter last year to £1,576m as pension sales grew.
The second quarter’s life premiums rose 27% to £361m as single premium annuity sales and recurring premium individual protection sales grew.
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