Press release
AEGON Scottish Equitable leads the market with a minimum 21 day guarantee rate period on all annuity quotes
8 May 2008- Guarantee period increased from 14 days to a minimum of 21 days
- If the annuity rate increases before the case is set up the new higher rate is applicable
- If the rate decreases, the quoted rate is honoured for a further 21 days from the rate change
AEGON Scottish Equitable today announces an important improvement to its market leading annuity proposition.
With immediate effect, the rate detailed on any AEGON Scottish Equitable annuity quote will be guaranteed for at least 21 days. If the rate increases, the new higher rate will automatically apply. But if the rate decreases it will remain guaranteed for a further period of 21 days from the date of the reduction.
Mark Cardy, Head of Annuity sales at AEGON Scottish Equitable said: “Our distributors have told us that one of their biggest frustrations in dealing with a client’s annuity is the time and effort it takes to re-quote to keep the rate current whilst waiting for the case to complete.
We have therefore increased our guarantee period on all annuity quotes from 14 days to at least 21 days. If there is a rate decrease within 21 days from quote, the original higher rate will now be guaranteed for a further 21 days from the date of a rate decrease. Better still, if the rate increases within 21 days from quote, clients will automatically receive that higher rate.”
There are no other annuity providers in the UK that have such a generous rate guarantee period on quotes.
Cardy said: “We believe a longer rate guarantee period reduces the requirement for numerous re-quotes, saving advisers and clients valuable time and money. Working with our distributors and improving our annuity proposition will enable us to maintain our market leading position.”
New business figures released on 7 May 2008 reveal individual annuities business at AEGON rose by 13% to £342m single premium, and two years after entering this market, AEGON is now established as a key player.
Notes to editors
- AEGON UK has assets under administration of £52.3 billion and employs around 4,500 staff.
AEGON UK is part of the AEGON group, which is one of the world’s largest listed insurers and has assets under management of £245 billion.
Mark Locke
