Resolution plans to seek acquisitions

INSURANCE buyout vehicle Resolution said it would hunt out further acquisitions in a consolidating sector, as it posted an interim profit.
By The Newsroom
Published 17th Aug 2010, 10:24 BST

Resolution made an operating profit before tax of 203m for the six months ending June, compared to a loss of 7m a year earlier.

Its earnings were driven mainly by profits at the Friends Provident insurer which Resolution acquired last year.

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In June, Resolution clinched a deal to buy AXA's UK life insurance business and the company said it would examine further acquisition opportunities.

The world's top insurers are jostling to strengthen their position in a consolidating market, and earlier this week Aviva rejected a 5bn bid approach from rival RSA for some of its core general insurance units.

"The company continues to target further life company acquisitions to both increase scale and build market leading positions in protection, workplace savings and annuities," Resolution said in a statement.

Resolution shares closed unchanged at 246p on Monday, giving the company a market capitalisation of around 1.5bn.

Related topics:Aviva