Resolution abandons Friends Life split

Resolution has confirmed it will make no more acquisitions and abandoned plans to split Friends Life after revealing a 58% fall in profits.

The life insurance consolidation vehicle, which has acquired Friends Provident, AXA UK Life and Bupa Health Assurance since 2009, recorded an operating profit before tax of £163m in the first half of 2012, down from £390m during the same period last year. It attributed the drop to lower expected investment returns on the in-force book, and "disappointing" performance in its international businesses. Having already frozen activity for the past 18 months, it has now confirmed it will no longer seek acquisitions, instead focusing on "securing maximum value from each part of the group". ...