The trade union representing workers at Aegon has expressed relief that 800 UK jobs will not go offshore, as the company outsourced administration services to Atos.

Aegis the Union, which represents people who work for the Aegon UK group of companies, Yorkshire Building Society Group, Skipton Building Society and Computershare Loan Services, had feared the jobs would be outsourced abroad instead of being maintained at the same location.

Aegon announced yesterday that it was strengthening its partnership with Atos, with a 15-year package for the latter to service and administer its existing non-platform customers.

The firm said the arrangement will “further improve customer service for around 1.4 million customers with a multitude of different policy types.”

Brian Linn, general secretary of Aegis the Union, said: “We are encouraged that Aegon’s review of existing business has resulted in a solution which guarantees the future of the Edinburgh site and provides opportunities for growth with a commitment to no offshoring of jobs.

“Our first impression is this is very positive news for our members regarding their job security and career development.

“We look forward to working with Aegon and Atos to ensure that our members interests are promoted and protected during this consultation period and beyond.”

Adrian Grace, chief executive of Aegon UK, said: “It’s important that as the financial services market evolves we continue to provide customers with an excellent service, stability and help them achieve a lifetime of financial security.

“Building on our established and already successful relationship with Atos will give continued momentum to our existing business.

“This is an important step in our strategy and is in the best interests of our customers, employees and shareholders.”
 
Since 2016, Atos has serviced and administered Aegon’s 500,000 protection customers and was said to have “an excellent understanding of Aegon’s business, culture and ways of working.”

The same teams currently supporting the existing business, will remain in Edinburgh, and will provide continuity of service, Aegon says.

Adrian Gregory, chief executive, Atos UK&I, said: “We are delighted to deepen our partnership with Aegon with this agreement.”

The agreement is expected to lead to annual run-rate expense savings for Aegon of approximately £10m initially, growing to “approximately £30m over time.”

Total transition and conversion charges are estimated to amount to approximately £130m and are expected to be recorded over the first three years of the agreement.