Dutch insurance and investment giant Aegon, which has UK operations based in Edinburgh, has announced the sale of £3 billion of annuity liabilities to Legal & General.
This follows a deal last month when Goldman Sachs-backed pension buyout specialist Rothesay Life agreed to buy £6 billion of annuities from Scottish Equitable, a UK subsidiary of Aegon.
This transaction completes the divestment of Aegon’s annuity portfolio.
Aegon said in 2010 it decided to no longer be an active player in the UK annuity market as it believed such products did not meet its long-term risk adjusted return requirements.
“Achieving the divestment of our UK annuity portfolio is an important step in the strategic repositioning of our business in the United Kingdom,” said Alex Wynaendts, CEO of Aegon.
“The divestment enables us to fully focus on growing our platform business.
“At the same time, I am pleased that we have found in Legal & General a good home for our annuity customers.”
Aegon said the transaction is in line with its continued shift to “capital-light businesses.”