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Aegon adds £35m to Cofunds migration bill

The Cofunds migration saw Aegon pay £35 million of ‘integration expenses’ last year, the company said in its half-year results today

Aegon adds £35m to Cofunds migration bill

The Cofunds migration saw Aegon pay £35 million of ‘integration expenses’ last year, the company said in its half-year results today.

As part of the Cofunds integration, last March Aegon moved £57 billion of Cofunds institutional assets onto FNZ technology, followed by £28 billion of retail assets in May onto GBST technology.

The migration of the Cofunds retail book saw significant issues created for advisers with 200 Aegon staff moved from other areas of the business to help with platform service.

Financial statements from the Dutch life company released this morning showed it incurred integration expenses of £35 million for the Cofunds migration and also its BlackRock defined contribution business which it completed the acquisition of last year.

Aegon’s UK chief executive Adrian Grace (pictured) said the company has placed a ‘huge emphasis on restoring service levels’ for Cofunds users and things are now back to ‘target levels’.

‘Between July and December significant strides were made and resource mobilised to address service issues. By the end of the year core operational services had returned to target levels,’ Grace said.

‘The focus now for the Aegon platform is on ensuring we provide the enhancements that advisers have requested and migrating the Nationwide book of business. We are clear on the functionality that needs to be prioritised for the coming months and beyond this have a continual programme of improvements planned for the service.’

The migration of the £8 billion Nationwide book is yet to take place and the company said this morning it will happen in the first half of 2019.

Over the second half of 2018, Aegon’s UK profit was at £53 million taking total profit to the year to £110 million. Total UK assets under administration were at £158.5 billion, with platform assets at £128 billion.

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