Aegon extends partnership with Atos for administration services

Edinburgh-based insurance firm Aegon has announced that it has strengthened its existing partnership with Atos, by announcing a 15 year contract to service and administer its Existing Business (non-platform customers).

This will further improve customer service for around 1.4 million customers with a multitude of different policy types.

“It’s important that as the financial services market evolves we continue to provide customers with an excellent service, stability and help them achieve a lifetime of financial security”, said Adrian Grace, CEO of Aegon UK. “Building on our established and already successful relationship with Atos will give continued momentum to our Existing Business. This is an important step in our strategy and is in the best interests of our customers, employees and shareholders.”

Since 2016, Atos has successfully serviced and administered Aegon’s 500,000 protection customers and has an excellent understanding of Aegon’s business, culture and ways of working. Aegon continues to be the product provider and will continue to carry out the regulatory responsibility for its Existing Business products, many of which stretch back over 40 years.

The same teams currently supporting the Existing Business, will remain in Edinburgh, and will provide continuity of service. The teams will also benefit from Atos’ ambition to win similar contracts from other providers and develop an Edinburgh-based centre of excellence in administration of life and pensions business.

“We are delighted to deepen our partnership with Aegon with this agreement”, said Adrian Gregory, CEO of Atos UK&I. “We look forward to working with the Aegon team to deliver operational and end-to-end customer service excellence, by blending the existing talent with tailored innovative technologies. This agreement also highlights the increasing footprint and ambition of Atos in providing business transformation expertise to the life and pensions market and the broader financial services sector.”

Aegon said it will continue the administration and servicing of all platform policies and schemes across Aegon Retirement Choices (ARC), Aegon Platform (previously Cofunds and Investor Portfolio Service),TargetPlan (previously BlackRock), Aegon One Retirement, Retiready and our Institutional platform. These services are on platform and are unaffected by this announcement.

The agreement is expected to lead to annual run-rate expense savings for Aegon of approximately £10 million initially, growing to approximately £30 million over time. Total transition and conversion charges are estimated to amount to approximately £130 million, and are expected to be recorded over the first three years of the agreement.

Brian Linn, General Secretary of Aegis the Union said: “We are encouraged that Aegon’s review of Existing Business has resulted in a solution that guarantees the future of the Edinburgh site and provides opportunities for growth with a commitment to no offshoring of jobs.

“Our first impression is this is very positive news for our members regarding their job security and career development. We look forward to working with Aegon and Atos to ensure that our members’ interests are promoted and protected during this consultation period and beyond.”