18th Mar 2014 08:33
LONDON (Alliance News) - Resolution Ltd, which operates the Friends Life brand, Tuesday declared its three-year restructuring complete and said it will change its name toschr Friends Life Group Ltd, as its annual pretax profit from continuing operation increased by more than five times.
Resolution also said it has entered a new strategic partnership with Schroders PLC, which will now manage GBP12.2 billion of equity and multi-asset funds on behalf of Resolution customers. The funds were previously managed by F&C Asset Management PLC, which has faced pressure on such strategic partner revenue of late.
Resolution Ltd reported a GBP369.0 million pretax profit from continuing operations in 2013, compared with GBP66.0 million in 2012. Revenue declined by 1.0% to GBP10.99 billion as claims, benefits and expenses fell by 3.5% to GBP10.64 billion.
Value of new business rose to GBP204 million from GBP194 billion, while sustainable free surplus increase to GBP331.0 million from GBP300.0 million.
Resolution kept its full-year dividend at 21.14 pence but said it will consider increasing its dividend if its coverage ratio improves.
Chief Executive Andy Briggs declared the company's three-year restructuring complete.
"We have a sustainable business with a profitable base for future growth. We operate in attractive growth markets, focused on managing legacy life and pension products, and capturing value in the fast-growing retirement provision market. The company continues to seek to maximise value from each part of the group while retaining its focus on rigorous financial discipline. We remain focused on generating growth in both cash and returns while maintaining our strong capital base," Briggs said in a statement.
Resolution said discussions regarding the potential sale of its Luxembourg based business, Lombard International Assurance, are ongoing.
Resolution shares were Tuesday quoted at 364.30 pence, down 2.4%.
By Samuel Agini; [email protected]; @samuelagini
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