Aegon UK has delivered a strong first half of 2025, with rising workplace pension inflows and early signs of progress in its adviser platform strategy helping underpin the group’s wider return to profitability.
The UK arm reported workplace net flows of £2.1bn in the six months to 30 June, up 24% from £1.7bn in the same period last year.
Net flows on its adviser platform improved by 18% year on year, though the business remains in overall outflow.
Total assets under administration (AUA) rose 4% to £226bn, while the two platforms together grew assets by 7%.
Operating result in the UK climbed to £88m, up 10% from £80m in the first half of 2024, giving the business what chief executive Mike Holliday-Williams described as “the financial stability and the ability to continue investing in the business”.
“We’re really maintaining momentum with some good workplace growth in there, and advisers starting to see a difference – some have got positive percentages in terms of the adviser platform,” he told Money Marketing.
“We’re maintaining the momentum we set out at Capital Markets Day a year ago, delivering on the promises we made. I’m really proud of the progress we’re making. We’re in a good place.”
The UK results were boosted by the onboarding of a large workplace scheme with 42,000 members and 113 new scheme wins in the period.
Holliday-Williams said this reflected “the strength of the proposition and the service we’re delivering” in what remains a highly competitive market.
He pointed to new initiatives such as Milo, Aegon’s personalised digital engagement engine, which is already live with 80,000 members across 300 schemes and will be rolled out further this year.
Other developments include giving members access to private markets through the default fund, expanding the member insight tool to support consolidation and preparing a new retirement investment tool to launch later this year.
“In the key areas of engagement, investment, return and consolidation, we’re making good progress,” Holliday-Williams said. “But we’re not resting on our laurels – there’s more to come in the second half.”
He added that workplace pension inflows could remain robust despite wider pressures: “There’s more ‘money in motion’ than ever before. Forecasts suggest more shifts to master trust and more money coming to market.
“That’s why differentiation is critical. Everyone’s getting the basics right, so engagement is key.”
The adviser platform continues to experience net outflows, which Aegon has attributed to industry consolidation and vertical integration among non-target firms.
But Holliday-Williams said there were encouraging signs within the firm’s target group of 500 adviser businesses, which provide the majority of gross flows.
“In the target 500 we are seeing good growth and positive net flows,” he said. “We’re listening closely to what advisers want, making journeys easier and quicker, and putting investment into the things they need.”
Aegon UK has committed to invest £70m–£80m annually through to 2027 to enhance the platform.
Holliday-Williams said the 30 changes introduced in the first half included both major additions, such as Junior SIP and offshore bonds, and smaller improvements to processes and reporting.
Another 20 enhancements are planned for the second half, including extending the Genius suite and improving digital journeys.
“We’ve got a roadmap ahead, driven by adviser feedback,” he said. “If we keep meeting those needs, increasing our market share with the target 500, and continue getting positive NPS scores from advisers and customers, we’ll stay on track for growth by 2028.”
Holliday-Williams also highlighted the role of technology and AI in supporting growth and efficiency.
“Some of the use cases are coming to fruition,” he said. “We’re using AI in areas like creating a knowledge hub, training, marketing and audit – anything involving documentation review.
“We’re also piloting AI in call quality reviews. We’ve seen efficiency gains already and we’ll use AI even more in Milo next year.”
Earlier this year, Holliday-Williams said Aegon’s mission is to be the “leading platform” in the market.
At group level, Aegon reported net profit of €606m, reversing a €65m loss in the first half of 2024.
Operating result rose 19% to €845m, mainly reflecting growth in the US, which now generates around 70% of group earnings.
Operating capital generation came in at €576m for the half year, while free cash flow rose 18% to €442m.
The board declared an interim dividend of €0.19 per share – up 19% year on year – and doubled its ongoing buyback programme to €400m.
Aegon also confirmed it has begun a review of relocating its legal domicile and head office to the US, aligning its corporate structure with its largest market.
The outcome will be announced at its Capital Markets Day on 10 December.
Group chief executive Lard Friese said the review reflected the central role of the US business in Aegon’s strategy and long-term growth. Any transition would be expected to take two to three years.
