The UK arm of Aegon, the Netherlands-based insurer, said it would pull out of the group risk market, with the loss of up to 147 jobs over the next two years from its Edinburgh headquarters, which employs more than 3,000 of its 4,900 British staff.

Aegon UK said its group risk business was too small in a mature market that was dominated by a few large providers. It provided companies with coverage for employee benefits such as life insurance, critical illness and income protection.