Resolution's overseas growth soars

Friends Provident-owner Resolution has seen strong growth overseas and greater investor confidence at its Lombard wealth management arm help offset difficult conditions closer to home.

The buy-out firm, which acquired Friends - sponsors of English cricket's Twenty20 competition - for 2 billion in 2009 in the first of a planned series of UK life takeovers, yesterday reported record annual sales at Lombard as well as at its international operation.

This helped counteract tough conditions for life and pensions business Friends in the corporate pensions and protection insurance markets - areas that have been hit as firms shed staff and amid a sluggish housing market.

Pre-tax operating profits at Friends fell 12 per cent to 116 million in 2010 despite tough action to cut costs at the division following its takeover. But the wider Resolution business delivered 275m in operating profits, up from just 6m in 2009, as it was boosted by acquisitions.

Resolution - set up by insurance entrepreneur Clive Cowdery - said last month it was halting deals to concentrate on integrating its UK life acquisitions.

It stressed yesterday it is not ruling out any attractive opportunities, but believes it can achieve targets without swallowing any more firms.

Resolution is to rebrand its UK operation as Friends Life from the end of this month following the acquisition of Axa's UK life and pensions arm for 2.75bn in September and the Bupa Health Assurance business for 168m earlier this year.

Mike Biggs, chairman of Resolution, said: "The acquisitions we have made and the clear strategic plans we are implementing underpin the board's confidence that the project will deliver its targeted mid-teens returns."