Standard Life revives Resolution interest

by Gill Montia

Story link: Standard Life revives Resolution interest

Standard Life is reported to be reviving its interest in making a bid for Resolution, the specialist manager of in-force UK life funds.

It is rumoured that Standard Life’s chairman has recently held several informal meetings with his counterpart at Resolution and analysts predict that any bid by Standard Life would exceed £4.5 billion.

Pearl Group, the privately owned closed life fund operator, is also interested in acquiring Resolution, which is itself in the process of a merger with Friends Provident.

The group recently increased its holding in Resolution to become its largest shareholder and it is reported that Standard Life is in discussion with Pearl over the possibility of acquiring Resolution’s open life business, if a bid by Pearl is successful.

Resolution has approximately seven million policyholders and £57 billion of assets, and its chairman is known to favour the idea of combining the business with a company that is actively writing new policies.

At the same time, the proposed merger of Resolution with Friends Provident is seen as unpopular among shareholders in both companies.

This week Resolution announced a sharp increase in operating profit for the six months to the end of June 2007, to £395 million.

The result compares with £118 million for the same period of 2006 and reflects Resolutions acquisition of the closed life business of Abbey, in September of last year.