Aegon offloads UK life and pensions outfit Guardian

Aegon today confirmed the sale of its UK-based life and pensions business Guardian to European private equity group Cinven, for a total cash consideration of £275m.

Guardian, which manages more than 300,000 life insurance policies in the UK, has been closed to new business since 2001.

Aegon Asset Management has entered into a long-term agreement with Cinven and will continue to manage the assets of Guardian, which total some £7.4bn.

"Consistent with actions over the past three years to dispose of, or run-off, certain businesses deemed non-core, Aegon has concluded that managing the closed business of Guardian companies no longer fits with our strategic objectives," says Jan Nooitgedagt, chief financial officer of Aegon UK parent, Aegon NV.

"We remain committed to the UK and to maximizing the opportunities of Aegon's chosen markets: ‘workplace savings' and at ‘retirement', which includes individual protection."

The book value of the Guardian business amounted to £271m (as at 30 June) while the embedded value amounted to £322m. Underlying earnings before tax totaled £23m.

Guardian, based in Lytham, England, employs approximately 170 people and, for most, their employment arrangements will be transferred to the buyer upon completion of the sale of the business.

The transaction is expected to close in the fourth quarter of 2011 and is subject to regulatory approval.