Aegon is selling £3bn of its UK annuity portfolio to Legal & General just weeks after it sold £6bn of its annuity portfolio to Rothesay Life.
The providr says it is making the sale to free up capital from non-core business to allow it to fully focus on the growth of its platform and protection businesses
Aegon stopped being an active player in the UK annuity market in 2010. It says the sale of the annuity portfolio significantly reduces its exposure to both longevity and credit risk. The transaction is in line with the company’s continued shift to capital-light businesses.
Aegon expects annual capital generation from its UK operations to be reduced by approximately £30m as a result of the transaction
Aegon UK chief executive Adrian Grace says: “Following last month’s sale of £6bn our annuity portfolio, we’re delighted to announce the sale of a further £3 billion annuity liabilities to Legal & General.
“Having not been an active player in the annuity market since 2010, it made perfect sense to sell a non-core element of the business and allow us to further accelerate the growth of our platform and protection businesses.”