Aegon announced an overall UK profit of £186m in 2023, as part of its second half year results published today (1 March).
This figure is up 4% from £180m in 2022, despite what Aegon described as a “challenging” economic environment throughout 2023.
Aegon’s assets under management (AUM) have also increased, from £187bn at the end of 2022 to £203bn at the end of 2023 – an overall growth of 9%.
The most significant and sustained growth was in Aegon’s workplace channel, with gross deposits of £6.9bn and a net flow of £1.8bn, a 31% increase and the second-highest ever figure for the company.
However, results for the UK retail platform were less positive, with outflows of £1.9bn in the second half of 2023 compared with £811m in the same period of 2022.
Commenting on the UK workplace platform, Aegon chief executive Lard Friese said: “Despite the loss of a large, low margin pension scheme in the third quarter, we reported positive net inflows for 2023 and expect continued net inflows as a result of the onboarding of new schemes and higher net deposits on existing schemes.
“At the same time, both Aegon’s UK Retail platform and asset management business experienced net outflows as they were adversely affected by the macro-economic environment in 2023.”
Speaking to Money Marketing, Aegon UK CEO Mike Holliday-Williams said the outflows were “largely reflective of market conditions relating to the cost of living”, but emphasised the overall positive performance in 2023.
“Our strong results allow us to continue the programme of investment to keep momentum in workplace and improve the retail proposition for when the market starts to come back again,” he said.
“We’re rolling out and transforming our digital experience – basically, every interaction from an adviser, employer and customer on our platform.
“100% of employers are using it, 70% of customers and 30% of advisers, and this makes it much easier and much more intuitive to use.
“We’re also looking to improve retirement journeys. As people move into retirement, engagement is a real challenge for employers on the workplace scheme, so we’re working with them in terms of how we engage at the right moment in time.
“Educating people to make the right choices and offering a broader range of choice is an area of constant improvement for us in the market.”
