Aegon puts British jobs at risk in cost cutting

Hundreds of jobs are under threat at insurer Aegon, which said today it aims to slash costs at its UK arm as part of a wider shake-up.

The Dutch company, which bought Scottish Equitable 16 years ago, is to overhaul its product range to focus on corporate pensions, and up to 600 of the 2400 staff based in Edinburgh could go.

The insurer said: "In the UK, Aegon will take significant steps to improve return on capital by targeting cost reductions of 25% in life and pensions."

Aegis, the union, described the move as a blow, though it is relieved that Aegon isn't planning to quit Britain altogether.

Aegis general secretary Brian Linn said: "We need to see a breakdown of the company proposals before we can assess the likely impact on our members."

Chief executive Alex Wynaendts said Aegon intends to become a "leader in all our chosen markets".

Transamerica Reinsurance, bought by Aegon in 1999, has been put up for sale.

Aegon took 2 billion (£1.67 billion) in Dutch government aid during the financial crisis, and says it is a "priority" to repay this as soon as possible.

The insurer is perhaps best known in Britain for its tennis sponsorship.