Resolution halts takeover activity

City A.M. Reporter
Insurance takeover vehicle Resolution has called a halt to its acquisition programme, saying it could meet key financial targets without making further deals for now.

"Resolution is confident that it will achieve its targeted mid-teen returns on the UK Life Project without further acquisitions," the company said in a statement.

"It will not contemplate acquisitions that would dilute the returns likely to emerge from the three acquisitions already made; there is therefore a high threshold for evaluating further acquisitions," it added.

Resolution, founded by entrepreneur Clive Cowdery, has aimed to build up a British life insurer valued at £10bn before floating or selling this by 2013.

It paid £1.8bn for life insurer Friends Provident in 2009, and last year acquired most of Axa's British operations for £2.75bn and the group life insurance arm of health insurer Bupa.

Resolution said it had increased the amount of synergies it was expecting in the near future. It said it was now targeting £112m of synergies per year before tax by end-2013, compared to £75m previously.

The company also targeted cash dividends from its non-UK businesses of at least £50m a year by 2014.