Aegon, a life insurance and pension group, has announced that it will reduce the costs of its unit-linked insurance policies sold in the Netherlands.

Aegon noted that in recent years, it has made substantial improvements by reducing costs and premiums to unit linked products. The value of these improvements total E380 million before tax. Aegon will implement further product improvements that have a value of E140 million before tax.

As a result of these measures, costs of unit-linked insurance policies sold by Aegon in the Netherlands will be consistent with the recommendations of the ombudsman and a recent settlement within the industry.

Currently, more than 70% of all customers are charged less than 3% of costs. Aegon’s unit-linked portfolio consists of 1.3 million policies, of which 50% have a guaranteed minimum return.