Aegon UK earnings on life business climbed 80% in the first three months of the year, the insurer reveals today.
Underlying earnings before tax, on an IFRS basis, were £18m in Q1 compared with £10m in the previous quarter and £7m in Q1 2009.
Meanwhile, earnings from pensions fell from £27m in the final three months of last year to just £9m in Q1, but Aegon says this reflects a decision to report its asset management performance separately from now on.
Elsewhere, Aegon UK's distribution arms, Positive Solutions and Origen, recorded a £2m loss in Q1. This was up from an £8m loss in the final three months of 2009 and a £3m loss in Q1 2009.
The insurer says cost cutting measures implemented across the businesses, particularly at Origen, are beginning to bear fruit.
"We are starting to see the benefits of that," Aegon spokesperson Lesley McPherson says. "Both businesses are having a better start to this year than last, which is also partly down to improved market conditions."
Overall, UK life and pensions earnings were £25m, up 178% compared with the same period in 2009.
UK life and pensions new business, on an API basis, was £235m, an increase of 5% on Q4 2009, although a decrease of 7% on Q1 2009.
Aegon UK chief executive Otto Thoresen says: "This is a solid first quarter performance. We have seen a significant rise in earnings and new business volumes have increased on the last quarter, showing a continued steady momentum."
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