Aegon has secured a deal for BlackRock’s UK defined contribution platform (DC) and administration business, in a bid to boost its place in the workplace market.
The deal will see Aegon take on £12 billion of assets and 350,000 customers, boosting Aegon’s workplace assets under management to £30 billion.
Aegon already partners with BlackRock, and it said it will continue to use BlackRock as the ‘primary investment manager for the clients who will transfer to Aegon as part of the transaction’. BlackRock said it will continue to work in the UK DC market through its investment solutions.
Following the deal, BlackRock’s DC managing director, Paul Bucksey, will become the combined company’s workplace managing director.
Adrian Grace (pictured), Aegon UK’s chief executive, said the deal is critical to the company’s efforts to give employers more in their pensions.
‘The combined strength and breadth of expertise makes us a compelling choice. With employers demanding additional solutions to meet employees’ needs to and through retirement, workplace savings are no longer just about traditional DC pensions,’ he said.
‘This makes it an exciting market and with an expectation it will triple in size over the next 10 years, we are well positioned to take advantage.’
News of the deal follows last month’s announcement that Aegon sold two thirds of its UK annuity portfolio to pension insurance business Rothesay Life.