Investment - Articles - L&G to sell Cofunds and IPS to Aegon

 Legal & General and Aegon have worked closely this year in delivering three mutually beneficial transactions: the acquisition of Aegon’s £2.9bn back book annuity portfolio, the 5 year distribution agreement to provide individual annuities to Aegon pension customers, and the acquisition of Cofunds and IPS by Aegon.

 Mark Gregory, Group Chief Financial Officer of Legal & General, said: “Over the last few years Legal & General Investment Management (LGIM) has developed a market leading international defined contribution pension platform business. LGIM manages £50bn in UK and US defined contribution pension assets, and plans to expand into the DC market of Asia. Cofunds is at the point where it requires a significant upgrade in technology to exploit its leadership position in the UK platform market. We have concluded that this long term commitment is best achieved under Aegon’s ownership as a specialist wealth platform provider.”

 The sale of Cofunds and IPS to Aegon does not impact Legal & General’s relationship with Nationwide, the UK’s largest
 building society.

 Legal & General’s Solvency II surplus, as at the 30 June 2016 was estimated at £5.3bn. The sale of Cofunds will increase the Solvency II surplus by £125m, and its Economic Capital surplus by £105m.