IT services provider Atos has signed a 15-year contract to service and administer Aegon's existing business (non-platform customers).
The agreement is initially expected to provide annual run-rate expense savings for Aegon of about £10m and could reach nearly £30m over time. The total transition and conversion charges are expected to amount to nearly £130m and are expected to be recorded over the first three years of agreement.
Since 2016, Atos has services and administered 500,000 protection customers in the UK for Aegon and also claims to have good understanding of the company’s business, culture and ways of working.
Aegon UK CEO Adrian Grace said: “As the financial services market evolves, it’s important that we continue to provide customers with an excellent service and stability, and help them achieve a lifetime of financial security.
“Building on our established and already successful relationship with Atos will give continued momentum to our Existing Business. This is an important step in executing our strategy, and is in the best interest of all our customers, employees and shareholders alike.”
Aegon will continue to be the product provider and will carry out regulatory responsibility of its existing business products, many of which have been in existence for over 40 years.
This partnership between the two companies is expected to be effective from the middle of next year. The teams that have been supporting Aegon’s existing business will remain the Edinburgh and will continue to provide the service.
These teams will benefit from the Atos’s aim of winning similar contracts from other providers and develop an Edinburgh-based center of excellence in the administration of life and pensions business.
Atos UK&I CEO Adrian Gregory said: “We are delighted to deepen our partnership with Aegon with this agreement. 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.”