The amount for the individual protection book was not disclosed and the acquisition is subject to court approval.
Following the acquisition, the life insurance, critical illness and income protection policies for around 400,000 customers will transfer to Royal London.
The policies are expected to transfer to the mutual in 2024, following the completion of the required court process.
In the interim, Aegon will reinsure the portfolio to Royal London and it will close to new business from today.
The companies said there was no immediate change for customers or their advisers and noted that servicing and claims would be processed in the normal way.
They added that they would give updates to customers and financial advisers as the acquisition progresses.
Barry O’Dwyer, group chief executive of Royal London, said: “We are delighted to be welcoming over 400,000 new protection customers and their advisers. Combined with over 900,000 existing customers who already trust Royal London to protect their families against life shocks, this transaction strengthens our position in the UK protection market.
“Our reputation for outstanding customer service means that customers and advisers will be reassured that they are in safe hands.”
He added: “The advised nature of Aegon’s individual protection customer base makes it a perfect strategic fit. We are strong champions of the adviser community and of impartial advice, and we look forward to supporting advisers through this transaction, making sure there is no disruption to their businesses or to their clients.”
