As part of its ongoing portfolio review, and consistent with its strategy to reallocate capital to businesses with higher growth and return prospects, Aegon will withdraw from the Group Risk market in the United Kingdom.
Group Risk products provide companies insurance coverage for their employee benefit programs. Typically, they cover life insurance, critical illness and income protection. The market for these products is generally mature and dominated by a few large providers. Aegon, however, has a sub-scale in-force business with limited prospects to achieve sufficient economies of scale. Aegon instead will pursue growth opportunities in more profitable business segments such as pensions, individual protection, investments and annuities.
Aegon expects the closure of its Group Risk business in the United Kingdom to positively impact future earnings and value of new business. In addition, Aegon expects to release approximately EUR 55 million of capital over the next three years.