TOBY LANGLEY | SANFORD C BERNSTEIN
The only reason Resolution exists is to do deals in the?UK life sector. The UK life market is unattractive because it is unprofitable and struggles to grow – a number of players appear to ignore this dynamic. Resolution feels this creates an opportunity to generate value by consolidating businesses.
EAMONN FLANAGAN | SHORE CAPITAL
Currently, purely Friends Provident is driving the numbers. In terms of looking for acquisitions, it’s clear Resolution wants to buy and there are a number of companies out there up for sale right now. Given its share price, though, the key issue is how Resolution will finance any activity.
MARCUS BARNARD | ORIEL SECURITIES
The figures were not particularly relevant to the overall picture. Resolution didn’t own Friends Provident for the best part of last year, so comparison with profitability is neither here nor there. The real question is what comes next? The company is talking to 20 people so we need to wait and see what they come up with.