Royal London purchases Aegon individual protection book

It’s unsurprising Aegon have withdrawn from a very competitive market, of which they weren’t a big player. Their key business is in the platform investments space. Royal London have bought their back book, and as a firm with excellent reputation for service, customers should see no negative impacts. It’s a negative for the protection market overall, as we like to see competition to drive ingenuity and competitive premiums for clients.

Royal London has purchased a substantial book of client protection policies and with it the client base.
Whilst it is a blow for competition, it is seemingly two businesses being clear about their strengths and doubling down in their markets.
Royal London has an excellent customer service reputation and protection offering whereas Aegon is not particularly competitive and is focused on other areas of their businesses.
Broadly this should lead to good outcomes for the clients concerned if a little less choice & competition in the protection market.

This is concerning for consumers as it reduces competition in the market which may result in fewer options for consumers and potentially higher costs. Additionally, reduced competition may result in reduced innovation in terms of product design and features.