Former Aegon staff in Edinburgh who transferred across to Serco as part of a 10-year outsourcing deal in 2012 are facing redundancy.

The £170 million deal saw Aegon transfer its 330 protection underwriting and claims staff to Serco, retaining 60 roles in proposition development, pricing, sales and actuarial processes. Around 300 of the affected jobs were in Aegon's office at Lytham St Annes, Lancashire, with the remainder in Edinburgh.

Now Serco has said it has placed all its 25 Edinburgh-based staff in consultation.

It said: "Serco can confirm that after reviewing operational requirements for underwriting and claims, we have taken the difficult decision to centralise our operations in Lytham St Annes, where we currently employ around 300 staff. Regrettably this will have an impact on 25 roles in our Edinburgh office." Aegon declined to comment.