Aegon UK recorded net outflows of £89mn from its advised platforms in the second quarter of this year, throwing the company back into the red after it had managed to return to net inflows in the previous quarter.
Aegon's outflows have been slowly shrinking over the past two years and last quarter’s positive net flows of £23mn marked the first time the retail business had posted positive net flows since its controversial replatforming in the second quarter of 2018.
The retail business consists of two core platforms, Aegon Retirement Choices and Aegon Platform - the latter formerly known as the Cofunds platform.
According to quarterly results published today (August 11), flows were down 15 per cent over April, May and June 2022 compared with the same period last year.
“Both inflows and outflows decreased following reduced customer activity due to an increased market uncertainty,” the company said in its results.
Revenue lost on the retail deposits was £2mn, the same as the previous quarter.
However Aegon UK’s operating profit was up 27 per cent compared with the second quarter of 2021, to £48mn. This figure was also up on the £43mn operating profit the UK business posted last quarter.
Total gross deposits were at £1.5bn, down 66 per cent on the £4.5bn the UK business saw in Q2 last year.
Across the entire UK business, including its workplace and institutional arms as well as its retail platforms, Aegon posted net outflows of £1.2bn.
Lard Friese, Aegon's group chief executive, said: "Mortgage origination volumes in the Netherlands, net deposits in the retail channel in the UK, and third party net deposits in our asset management business were down versus last year, reflecting a challenging macro-economic outlook and rising interest rates."
ruby.hinchliffe@ft.com
