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Resolution says no need for further acquisitions

Resolution says it does not need further acquisitions as part of its UK life consolidation project.

In a market update published this morning, Resolution says the returns it has been targeting can be achieved without needing to acquire more businesses.

The statement says: “Resolution is confident that it will achieve its targeted mid-teen returns on the UK Life Project without further acquisitions.”

The company adds that shareholders in Resolution do not want to mix returns from the UK Life project with returns from other projects.

Resolution will issue a further update on March 24 alongside its preliminary 2010 results on how this can be achieved.

In a conference call this morning chief executive John Tiner (pictured) did not rule out further acquisitions but said: “We closed the Axa deal in September last year, and we announced the Bupa acquisition in September last year so we have been intensively in the six months since doing a strategic review of the enlarged business. On the basis of that, we can very clearly see a route to achieving our target returns.
 
“What it does is set a hurdle in terms of future acquisitions, because of course we do not want to dilute our returns with future purchases. Of course if there are transactions which will enable us to add to those returns then we will look at them.”

The company owns Friends Provident and Axa’s UK life business, and completed its acquisition of Bupa Health Assurance on February 1. Friends Provident and Axa are expected to come under the new umbrella brand of Friends Life by the end of March.

Tiner admitted the integration of the Friends, Axa and Bupa businesses will result in job losses. Resolution is targeting annual cost savings to increase from £75m to £112m on an annualised basis by 2013.

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  1. So they finally admit there will be job loses? The workforce has been decimated already – anything these people say is a crock.

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