Origen and Positive Solutions posted a loss of £2m for the final quarter of 2011, meaning the distribution businesses of Aegon UK made a loss of £6m for the year as a whole.
In Aegon’s Q4 results, published today (17 February), the distribution arm doubled its losses compared to Q3, when it posted a loss of £1m. The £2m loss posted was the same as was recorded in Q4 2010.
Aegon UK reported an underlying loss before tax of £22m in its full-year 2011 results, driven in part by £52m worth of charges related to a consumer redress programme set up in 2009 to compensate Scottish Equitable customers over administrative failings.
The firm said that its pensions business recorded a loss of £50m, reflecting a charge of £52m related to the customer redress programme, up from a £25m charge for the same period last year. Expenses related to the execution of this program amounted to £19m.
Adrian Grace, chief executive officer of Aegon’s operations in the UK, said: “Aegon UK successfully tackled some major historical issues in 2011 and this has had a negative financial impact in the short term.
“Our 25 per cent cost saving target has been met and our customer redress programme is drawing to a close. Our platform proposition has been warmly received in the market. We are fully focused on the future and ensuring we take maximum advantage of the opportunities that lie ahead with the retail distribution review and pensions reform.
“Our development plans concentrate on our core markets of “at retirement” and workplace savings and we are on track to achieve our immediate and long term goals.”