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Daily Insurance Industry News
Wednesday 22nd of May 2019
November 16, 2007

Pearl Offer For Resolutions Accepted

by Stewart Douglas

Story link: Pearl Offer For Resolutions Accepted

Insurance group Pearl Assurance has today announced that it has finally reached common ground with Resolution as it moves to takeover its competitor in a move worth almost £5 billion after facing stiff competition from rival Standard Life.

The announcement will see Pearl acquire the business and assets of Resolution in a move valued almost half a million pounds higher than the Standard Life group’s previous offer, which it was thought could further flame a bidding war between the two potential suitors.

Resolution had rejected the approach made by Standard Life for the company which was valued a £4.6 billion initially, before reversing to accept the higher revised offer from Pearl Assurance in what has been a long, drawn-out process.

Pearl were expected to make a formal offer after their move to step up their equity holding in the company in the wake of the failed Standard Life bid. Pearl presently hold a 26% stake in the company, prior to the completion of the takeover process.

The move is designed to incorporate Resolution as a subsidiary of Pearl, whilst both independent brands will remain separate. The business assets of Resolution will remain as present, and all staff are likely to remain in post following the completion of the move.

Speaking today on the takeover success, Pearl executive Hugh Osmond said that the business of Resolution will sit comfortably within the Pearl infrastructure, and will help the company provide enhanced shareholder value over the medium to long term.

Meanwhile, Resolution were said to be delighted to be joining forces with Pearl, in the belief that both businesses will mutually benefit from the experience and reach of the other with a view to continuing to provide an attractive return for investors.

 

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