GENERAL HISTORY
AEGON UK is a leading manufacturer, fund manager, and distributor of pension, protection, and investment products. The principal holding company within the AEGON UK group of companies is AEGON UK plc (AEGON UK). It is a company limited by shares, incorporated on December 1, 1998. The principal offices of AEGON UK are Edinburgh (Scotland), London (England), Lytham (England), and Dublin (Ireland).

The primary operating subsidiaries of AEGON UK are:

  • Scottish Equitable plc
  • AEGON Asset Management UK plc
  • Origen Financial Services Ltd
  • Positive Solutions Ltd
  • HS Administrative Services Ltd
  • Guardian Assurance plc
AEGON UK operates four distinct businesses:
  • AEGON Individual — all operations relating to the individual investment, protection, and pension markets in the United Kingdom; this business primarily operates under the Scottish Equitable brand name
  • AEGON Corporate — all manufacturing and scheme administration operations relating to the corporate pension and employee benefits markets in the United Kingdom
  • AEGON Asset Management — investment management operations
  • AEGON UK Distribution — intermediary distribution businesses
PRODUCTS AND DISTRIBUTION
AEGON UK is a major financial services organization specializing in the long-term savings and protection markets. AEGON UK sells a range of products through financial advisor channels in the United Kingdom. The business is centered on two core markets: individual and corporate customers. This segmentation is driven by a desire to place the customer at the heart of the strategy.

AEGON Individual brings together individual pension and protection and onshore and offshore life businesses in order to focus on providing solutions to meet the protection, long-term savings, and retirement income needs of individuals. This business operates primarily through the Scottish Equitable brand.

AEGON Corporate provides group pensions and employee benefit solutions through the Scottish Equitable brand, scheme administration through the HS Administrative Services brand and worksite marketing software through the AEGON Benefit Solutions brand.

PENSIONS
The UK government increase in the price cap for new stakeholder business to 1.5% for 10 years and then 1% thereafter was implemented in April 2005. So far, only a small number of product providers (including AEGON UK) have adopted the new charge cap, but others are expected to follow during 2006.

Changes to many aspects of UK pension legislation and taxation continue to impact the industry. The most significant change relates to the introduction of a simpler and unified tax regime, which will apply to all types of pension arrangements. This will be implemented in April 2006 and will impact all pension providers in the United Kingdom. Reviews of product ranges and supporting infrastructure are underway to ensure that AEGON UK capitalizes on the opportunities presented by these changes. Sales of more specialized pensions remain strong, particularly in the area of income drawdown and phased retirement products. These allow individuals up to the age of 75 to access part of their pension income without having to fully purchase an annuity until a later date.

High standards of service are a key market differentiator for AEGON UK, with technology increasingly being used to improve efficiency for providers and advisors. AEGON UK is building on its success with SmartScheme, AEGON UK’s technology solution to pension administration. The company is involving financial advisors and clients in developing technology solutions to ensure that all parties derive benefit.