Resolution ponders smaller buys
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Resolution has hinted that it may look to complete a series of “smaller” acquisitions in the UK life industry.
The firm completed its acquisition of Axa’s UK life business in September, under its previous purchase Friends Provident.
Resolution announced its acquisition of Bupa Health Assurance in October, which is due to complete in early 2011. The company is also aiming to create a life insurer worth £10bn to sell off by 2012/13.
In a business update published last week, Resolution says: “The Bupa transaction illustrates the multiple routes available to Resolution to complete the UK life consolidation project. These could include further scale transactions or a series of smaller bolt-on steps.”
Total sales at Resolution for the first nine months of this year on an annual premium equivalent basis and including one month’s worth of Axa sales were up by 35 per cent from £505m to £683m.
UK sales including Axa’s figures for September rose by 8 per cent from £296m to £320m.
New group pension business grew by 6 per cent from £218.7m to £232.4m, while individual pensions business was up by 24 per cent from £18.4 m to £22.8m.
Annuity business rose by 11 per cent from £18.8m to £20.8m and protection business stayed relatively flat with a 3 per cent increase from £31.1m to £31.9m.
Trading figures were not given for Sesame Bankhall Group but Resolution says that the business has “continued to trade profitably”.
Friends Provident managing director of corporate benefits Paul McMahon says the merger of the Friends and Axa UK life business is progressing well.
He says: “The integration is going remarkably well. It is immensely complicated but the attitude of staff has been enormously encouraging.”
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