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.