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Tiner envisages large-scale buys for Resolution

Resolution chief executive John Tiner says the firm may pursue further “large-scale” acquisitions towards the end of its life sector consolidation project.

Speaking to Money Marketing last week following the company’s decision to return £500m of excess cash to shareholders, Tiner said big transactions could be completed in the aftermath of Solvency II and the RDR.

He said: “From 2013 onwards, as we move to the end of the project, there could be some large-scale transaction activity. At the moment, the industry is grappling with the uncertainty of Solvency II and RDR. They are quite big initiatives that might drive changes to market structure.

“It is difficult to tell what those changes might be but my guess is that scale will be even more important because it is possible the cost of capital will increase for some firms.”

In the next 12 months, Tiner said the firm remains in the market for “bolt-on” acquisitions in the protection, workplace pension and annuity markets.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Exasperated me 16th June 2011 at 3:15 pm

    After shooting all the fish in the barrel he scoops them up for dinner.

  2. Resolution is akin to the carpet baggers exploitation of South by the North following the American Civil War. I is worrying that many legacy life offices, targeted by Resolution have suffered grievously under the overzealous regulation that Tiner was responsible for! Is it not time to ban regulators from exploiting such positions? I seem to recall the FSA banning product placement where the benefiting company was the Network owners – I think they called it “Better than best advice”. Well lets have some better than best regulation please!

  3. In case some don’t remember, John Tiner was Hector Sants predecessor. He jumped ship before the good ship FSA hit the iceburg, but if anything is more culpable than Hector.

  4. We found the service from one Resolution company dipped badly when they de-mutualised. And it fell through the bottom after Res bought them. We don’t deal with any Resolution company, except where we have to for existing business.

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