Aegon has no plans to merge newly acquired Nationwide planners with Origen, the firm's financial advice arm which is operated as a separate entity.
Last week, it was announced Nationwide's 350-strong planning team would move over to Aegon. Of these, around 215 are financial planning managers, but also provide development and support roles.
Speaking on the back of the firm's half-year results, Aegon UK boss Mike Holliday-Williams told FTAdviser the Nationwide deal “made sense” for the pair at this point but Aegon had no plans to move further into the advice space.
Holliday-Williams said: “Nationwide wanted to come out of the planning business and we wanted to get continuity for customers. They were already using our platforms so it made sense for the financial planners to come over to us.
“We see it as an extension of our strategic partnership with Nationwide.”
The transfer is expected to be completed in early 2024, at which point around 90,000 customers will move to Aegon UK.
He went on to say there are no plans to merge it with Origen, which is run as a separate entity.
“Origen is a separate unit,” he said. “It will use the skills that the Origen team has but it is providing a very different service.
“There is the opportunity for Origen to offer further advice and work with the team but it sits separately.”
Aegon saw net outflows of £413mn in its retail platform in the first half of 2023, blaming customer caution in the tough economy and an industry-wide drop in transfers from defined benefit to defined contribution pensions.
It compares with net deposits of £23mn in the same period the year prior.
However, the company saw growth in the workplace part of the platform with net deposits of £733mn, compared with the £701mn achieved in the first half of 2022.
Holliday-Williams added: “We are continuing to improve and make our platforms easier to use.
“It is not going to take away from the macroeconomic conditions and the cost of living crisis meaning people are not saving money.
“The economic conditions make it difficult to predict. We are already navigating our way through them.”
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
