Aegon UK earnings jump but auto-enrolment charge cap cost of up to £25m a year looms

Laura Miller
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Aegon UK has said that it estimates the charge caps for auto-enrolment business will cost it between £20m to £25m a year, as it reported a 30% rise in pre-tax earnings for the second quarter.

Underlying earnings before tax from Aegon's Q2 operations in the United Kingdom increased to £26m - higher than any quarter in 2013 - up from £20m for the same period last year, which the insurer said was mainly driven by improved persistency. Earnings from its life business declined to £21m, down from £23m for the same period last year, mainly driven by lower investment income, Aegon said, as it selectively de-risked its investment portfolio. The charge cap costs relate to an announcement made by the Department for Work and Pensions (DWP) in the first quarter of the year, which are e...

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