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

Laura Miller
clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pension transfers being 'unnecessarily' delayed due to scam warnings

Pension transfers being 'unnecessarily' delayed due to scam warnings

PensionBee argues there is ‘no clear correlation’ between the number of scam flags and the number of scams

Martin Richmond
clock 11 September 2025 • 3 min read
What is Reform UK's stance on pensions?

What is Reform UK's stance on pensions?

Reform UK recently held its 2025 conference at the NEC in Birmingham

Professional Adviser
clock 09 September 2025 • 5 min read
Could dashboards be the answer to Millennial pension apathy?

Could dashboards be the answer to Millennial pension apathy?

The dashboard rollout could be an inflection point

Paul Muir
clock 08 September 2025 • 4 min read