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Resolution profits soar

Resolution’s asset management business increased by 150 per cent to £14.5m in the first half of 2006.

The company recorded profits of £14.5m in its asset management business compared with £5.8m in the six months to December 31 2005.

Overall operating profit rose by 35 per cent to £116m compared with £86m in the last half of 2005 on a European embedded value basis.

The interim dividend increased by 15 per cent to 6.64p per share from 5.77p in 2005.

Group chief executive Paul Thompson says he expects the UK life sector to consolidate further and says Resolution will play an active part in this, suggesting the company is on the look out for further acquisitions of closed life and pension funds.

Abbey’s UK and offshore life businesses which were acquired by Resolution in June were not included in the results.

Thompson says: “Our life company, asset management and service company profits all moved ahead in the first half, underpinning an increase in dividend growth to 15 per cent per annum.

“We are well advanced in our delivery of the £38m per annum of cost and asset management synergies targeted from the merger of Britannic and resolution last year. We remain confident of delivering an internal rate of return for shareholders of at least 16 per cent post leverage, from the recent acquisition of Abbey’s life businesses.”

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