6th Sep 2006 15:17
Resolution PLC06 September 2006 This announcement and the information contained herein is not for release,publication or distribution in whole or in part in or into the United States ofAmerica, Canada, Australia, Japan or South Africa 6 September 2006 Capital release and financing repayment Resolution plc ("Resolution") announces the repayment of £1,300 million of the£1,680 million bridging finance taken out to acquire the UK and offshore lifebusinesses of Abbey National plc ("Abbey"), following the release of excesscapital from the acquired companies. The capital released was surplus to that needed to satisfy both regulatoryrequirements and Resolution's capital management policy for the acquiredcompanies (as set out in Resolution's prospectus dated 23 June 2006). Therepayment of the bridging finance is higher by £150 million than was originallyanticipated following notification from the FSA that the £200m of subordinateddebt issued by Scottish Mutual Assurance Limited (formerly Scottish MutualAssurance plc, "SMA") qualifies as Tier 2 capital resources within SMA, withoutthe need for a waiver or rule modification to be obtained from the FSA. Theamount of excess capital retained for working capital purposes has beenincreased by £50 million to £150 million. The balance of the bridging finance is expected to be refinanced in the fourthquarter of 2006 by the issue of Tier 2 hybrid capital, subject to marketconditions. Enquiries: Analysts & investors ResolutionSteve Riley +44 (0)20 7489 4884 Media Temple Bar AdvisoryAlex Child-Villiers +44 (0)7795 425 580 Notes to editors: • The acquisition of the UK and offshore life businesses of Abbey was completed on 1 September 2006. • Resolution is the largest specialist manager of in-force UK life funds. • Resolution has an estimated 7 million customers, and combined life company invested assets of over £63 billion. • Resolution's interim results will be released on 20 September 2006. • Resolution's website is www.resolutionplc.com This announcement is not an offer to sell or a solicitation of any offer to buythe securities of Resolution plc (the "Company", and such securities, the"Securities") in the United States or in any other jurisdiction. The Securities have not been and will not be registered under the US SecuritiesAct of 1933, as amended (the "Securities Act") and may not be offered or sold inthe United States unless registered under the Securities Act or an exemptionfrom such registration is available. No public offering of Securities of theCompany is being made in the United States. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Sant Uk.10te%