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Cofunds buy hands Aegon £28m pension boost

Aegon's UK pension business received a £28 million boost following the acquisition of Cofunds last year.

Cofunds buy hands Aegon £28m pension boost

Aegon's UK pension business received a £28 million boost following the acquisition of Cofunds last year.  

Figures released this morning showed how the £147 million deal to buy Cofunds has changed Aegon's UK business: in the first half of 2016 it noted pension earnings of £1 million over the first half of the year, compared to £29 million in 2017. 

This was the first year that Cofunds was included in the quarterly figures, and the size of this deal was reflected in the UK company's performance.

Aegon's platforms including Cofunds recorded £3.1 billion of net inflows over the three months between April and June. Along with positive stock market movements this took total assets under administration on platforms to £106.6 billion. At the same time last year Aegon had platform assets of just £8.9 billion. 

Overall the UK business contributed earnings before tax of £35 million in the first half of 2017, compared to £30 million last year. 

Year on year Aegon did lose out on annuity sales after it pulled out of the market at the end of 2016. In the first half of last year it recorded £12 million of new annuity sales. 

Across its European business operating profits also increased by 12%, partly due to the Cofunds acquisition.  

Adrian Grace, chief executive of Aegon UK, said the Cofunds acquisition, as well as a deal to buy BlackRock's defined contribution pension platform last year, have significantly helped the business. 

'Last year’s deals have fundamentally transformed the scale of our operations and we now work with advisers to either manage or administer £151 billion of long-term savings for more than 3 million customers across the platform and workplace markets.

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