Aegon is stopping writing annuities and has signed a deal with Legal and General to provide the products to its customers.
The deal follows the sale of its £9bn annuity portfolio to Rothesay Life and Legal & General earlier this year.
Legal & General will write all new Aegon annuity business from October, and Aegon will stop writing new annuities from Q4 2016.
Where pension customers have a future annuity guarantee – Guaranteed Annuity rate or Guaranteed Minimum Pension, these will continue to be honoured with the annuity being set up by Legal & General instead of Aegon. Pension customers without a guarantee will be able to receive an annuity quote from Legal & General as the Aegon preferred supplier when considering their retirement options.
Aegon UK chief executive Adrian Grace says: “Not having been an active player in the annuity market for some time, it made perfect sense to sell our £9 billion annuity portfolio and concentrate on accelerating the growth of our platform and protection businesses. The deal supports our strategy of focussing on platform growth and providing choice for our customers.”