Aegon, a life insurance, pension and investment company, has announced the withdrawal from the Group Risk market in the UK. The move is a part of the company’s ongoing portfolio review, and is likely to boost its future earnings and value of new business.
The closure is in line with the company’s strategy to direct capital to businesses with higher return and growth prospects. The company is expected to release about E55 million of capital in the next three years.
Group Risk products usually include life insurance, critical illness and income protection polices, and companies buy these products for their employees. The market for Group Risk products is generally mature and captured by a few large players. Aegon instead, will explore growth opportunities in more profitable business segments such as individual protection, pensions, annuities and investments.