Resolution interim profit rose sharply boosted by Abbey contribution
Resolution, the UK insurer in the process of merging with rival Friends Provident, said its interim profit rose strongly, helped by a first contribution from the recently-acquired insurance operations of High Street bank Abbey.
Resolution said operating profit for the six months to June 30 came in at £395m on a European Embedded Value basis, more than three times the £118m reported in the same period last year.
Resolution said the profits increase was fuelled by the first-time inclusion of Abbey in the group's results, following completion of the £3.6bn takeover in September last year.
Resolution said its 'immediate focus' was on completing the Friends deal, in spite of opposition from its biggest shareholder, rival insurer Pearl Group.
Privately-owned Pearl, led by entrepreneur Hugh Osmond, in July build up a 16.5% stake in Resolution and called on the group to abandon the Friends deal in favour of unspecified 'alternative opportunities.'
There is speculation Pearl may launch a cash bid for Resolution of up to £5bn, with any bid likely to come after Resolution publishes formal documents on the Friends tie-up in early October.
Resolution and Friends have said they plan to hold shareholder votes on their tie-up in late October, paving the way for the merger to take effect in the following month. The combined group would be called Friends Financial.
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