Aegon to close second business in cost-cutting drive

The life and pensions giant will close the division, which offers third party administration services to trustees, alongside its employee benefits arm, which schemeXpert.com's sister title Pensions Week revealed was winding down earlier this month. Its Edinburgh trustee solutions office will remain open.

The move is part of Aegon's plan to cut its UK operating costs 25%, and could see nearly 90 jobs affected, the majority in the trustee solutions area.

Aegon NV chief executive Alex Wynaendts said: "The measures we are taking in the UK are essential to our larger objective of improving returns and sharpening our focus on the long-term prospects for our business.

"By reducing costs, improving service levels and focusing on those market segments where we have leading positions, I am confident that we will create a more efficient organisation, better positioned to respond to market opportunities and the developing needs of our customers.

"The UK continues to be a key market for Aegon and we are committed to pursuing the future opportunities from a position of strength.”

But trade union Aegis warned the move would be "painful", a spokesman adding: "Today’s announcement is devastating news for our members in Aegon Trustee Solutions in Daresbury and Benefit Solutions in London.

"Although there are no expected job losses for at least a year, our members had high hopes these businesses would survive. We anticipate that this will be a painful process for everyone and we will do everything we can to help our members through this extremely difficult time."