Insurance takeover specialist Resolution announced plans to create a new asset management unit, and said cost savings from merging its acquisitions would be bigger than first thought thanks to a new outsourcing deal.
Resolution, which aims to buy underperforming British life insurers and merge them into a more profitable whole, said a 15-year agreement to outsource IT and policy administration duties from its flagship Friends Life business would deliver cost savings of £143M by 2013, up from an original target of £112m.
The company, created in 2008 by insurance entrepreneur Clive Cowdery, also said it planned to set up an in-house asset management business in the second half of 2012. Resolution has previously said it might acquire a fund management business to invest the assets of its insurance businesses.
Resolution's Friends Life business had sales of £880m in the nine months to September 30, up from £705m in the 2010 period.
City A.M. Reporter