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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Go to Proactive UK

Banks

Lloyds Banking Group: Could the high street lender splash £3bn on Aegon's UK arm?

Some of Britain’s biggest savings and insurance groups are expected to take an early look at Aegon’s UK business, which has been pushed into a strategic review as the Dutch group prepares to rebrand as Transamerica and shift its centre to the US.

Panmure Liberum flags a broad field of potential bidders. Phoenix Group, Aviva, Royal London, M&G and Lloyds Banking Group PLC (LSE:LLOY) are all seen as plausible trade buyers.

Legal & General is mentioned but viewed as a less likely participant. Private equity-backed operators are also expected to weigh up an offer.

The prize on offer is a substantial platform franchise. Aegon UK specialises in capital-light workplace and adviser-led savings, with £124 billion of assets under administration in those core segments and £226 billion across all UK activities.

The business delivered operating profit of £167 million and net income of £56 million in 2024, and still carries some legacy books.

Depending on how the business is carved up, analysts think it could fetch between about £1.5 billion and £3 billion.

Even the lower end of that range would mark one of the larger recent transactions in the UK long-term savings market, offering the winning bidder instant scale.

Aegon confirmed the strategic review, including a possible disposal, at its capital markets day in London, where it also unveiled plans to take the Transamerica name across the group.

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