NETHERLANDS - Dutch insurance and pension company Aegon will farm out part of its pension administration business to A&O Fund Management.

The two companies announced today they have signed a joint operating agreement which is mainly aimed at supporting small to medium-sized Dutch pension funds.

Erik van Houwelingen, a member of the governing board at Aegon, argues there is a demand, particularly among smaller to medium-sized pension funds, for companies able to tackle schemes' administration.

"Due to more stringent regulation, pension funds increasingly consider outsourcing as part of their pension implementation," the company said in a statement.

The move is an addition to Aegon's existing pension business, including TKP Investments, its multi-manager and fiduciary arm based in Groningen.

A&O, which runs the €3.2bn Dutch painters pension fund BPF Schilders, has welcomed the move as an opportunity to expand its business to other pension funds.