Resolution may split its operations between an open front book and a closed back book.
In a conference call this morning, chief executive John Tiner says the idea is one of a number of options being put to shareholders as an exit strategy for when it comes to concluding its life sector consolidation project.
He said: “There is merit in looking at that because if you look at the financial characteristics you see a back end which has a very large cost base and a business which is running off and generating cash, whereas the front end of the business is out in the marketplace striving to win new business and increase the value of new business, but requires a lot of cost to be dedicated to it in comparison.
“We are exploring whether there are structural solutions that would be beneficial for shareholders in separating those two books.”
In a project update this morning, Resolution says its objective is to complete the UK life project by returning the restructured businesses to their “natural long term owners”. This could include a cash sale, together or in parts, of the restructured business, a flotation, a separation between open book and closed book and a merger with another life company.