Resolution rejects more buyouts as focuses on efficiency savings

CLIVE Cowdery’s insurance buyout firm Resolution will step back from further UK purchases while it integrates its three previous acquisitions.

Resolution said in a strategy update yesterday that consolidating Friends Provident, AXA’s UK life business and Bupa Health Assurance should generate £112m cost synergies per year by 2013, up from £75m.

The firm said it was now confident of delivering mid-teens returns with the current businesses.

“It will not contemplate acquisitions that would dilute the returns likely to emerge from the three acquisitions already made,” the business said.

Cowdery’s Resolution has aims to build up a British life insurer valued at £10bn before floating or selling this by 2013.