Friends Provident posts £46 million loss
Friends Provident recorded a loss of £46 million in 2007, partly as a result of a £400 million one-off accounting charge. The result compares with profit of £400 million in 2006.
It should be pointed out that the £46 million annual loss was reported under IFRS accountancy rules; under the EEV regulations, the group made a profit of £16 million.
The life and pensions provider has been undertaking a far reaching strategic review, following the failure last year of its merger negotiations with Resolution, the closed life funds consolidator.
The review has already resulted in 600 jobs losses and could result in the disposal of non-core parts of the business.
Resolution was eventually acquired by Pearl Group and the failure of the Friend’s bid left the company itself vulnerable to a takeover.
US private equity firm, JC Flowers, is reported to be preparing an offer, which Friends chairman, Adrian Montague, says his board would be “prepared to discuss”.
JC Flowers holds a 2.7% stake in Friends and is rumoured to be preparing a bid that values the group at around £4 billion.
Finally, Friend’s finance director, Jim Smart, will be leaving the group this summer.
Category: Companies News, Financials, Insurance News
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