Aegon’s subsidiary in the United Kingdom has strengthened its existing partnership with Atos, signing a 15-year contract to service and administer its Existing Business (non-platform customers).
Aegon says this agreement will further improve customer service for around 1.4 million customers with a multitude of different policy types.
“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,” says 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 executing our strategy, and is in the best interest of all our customers, employees and shareholders alike.”
The agreement is initially expected to lead to annual run-rate expense savings for Aegon of approximately GBP10 million, growing to approximately GBP30 million over time. Total transition and conversion charges are estimated to amount to approximately GBP130 million, and are expected to be recorded over the first three years of the agreement.
Since 2016, Atos has successfully serviced and administered Aegon’s 500,000 protection customers in the UK, and has an excellent understanding of Aegon’s business, culture and ways of working. Aegon will continue to be the product provider and will carry out the regulatory responsibility for its Existing Business products, many of which stretch back over 40 years.
The partnership is expected to be effective as of mid-2019. The same teams currently supporting Aegon’s Existing Business will remain in Edinburgh, thereby providing continuity of service. These teams will also benefit from Atos’s ambition to win similar contracts from other providers and develop an Edinburgh-based centre of excellence in the administration of life and pensions business.
“We are delighted to deepen our partnership with Aegon with this agreement,” says 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 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 its Institutional platform. These services are on platform and unaffected by this announcement.
