LIFE and pensions provider Aegon UK, the parent of Scottish Equitable, is showing signs of recovery with a rise in third-quarter net profits from (pounds) 20m to (pounds) 25m.
A weak start to the year, however, meant its nine-month net profits were down to (pounds) 66m from (pounds) 86m in the same period of 2002. Dutch parent Aegon cited higher pension contributions, and reduced fees arising from lower equity markets, as reasons for its UK subsidiary's lower nine-month figures.
Aegon UK enjoyed a 98% surge in offshore investment business during the nine months, with a switch from Luxembourg to Dublin about a year ago paying dividends.
A spokesman also cited the retreat of Abbey National's Scottish Mutual International and Scottish Provident International from the market in explaining this offshore success.
Aegon UK is engaged in a radical restructuring, which is affecting between 600 and 800 posts mainly at its Edinburgh base. It is cutting back in some areas and recruiting in others.
The spokesman said much of this work had been done.
Aegon UK , which has been acquiring firms of independent financial advisers, employs about 3000 of its 5000-strong workforce in Edinburgh.
David Henderson, chief executive of Aegon UK, said: ''The last three years have been of considerable challenge to the industry. I passionately believe the UK is a strong market and has considerable potential to develop further. The feel we detect from the market at present is that there is a return of confidence.''
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