Pension sales up but earnings down at Aegon

Aegon saw new pension sales increase 44 per cent in Q1 of 2013 compared to the same period a year earlier, although its underlying pensions earnings were hit by adverse persistency, falling from £11m to £5m.

The insurer’s results showed pensions premiums increasing slightly from £228m in Q4 of 2012 to £229m in Q1 2013. But it says it is too early to assess the effect of the Retail Distribution on sales as some of the Q1 2013 business includes pipeline commission schemes.

The insurer said the negative effect of adverse persistency on earnings as a result of the RDR was £7m.

An Aegon spokesman says: “New life sales were up 37 per cent to £244m compared to the first quarter of 2012, reflecting the launch of income drawdown products on our Aegon Retirement Choices platform, the benefit of auto enrolment and strong sales in group pensions.”