9th Jun 2005 07:32
F&C Asset Management PLC09 June 2005 F&C Asset Management plc 9 June 2005 For immediate release Notice of early termination of contracts F&C Asset Management plc ("F&C") notes today's announcement by Resolution LifeGroup Limited ("Resolution Life") of its intended merger with Britannic Groupplc and the related decision to internalise over time the management of asignificant portion of its assets. Resolution Life's businesses include theformer Royal & Sun Alliance Insurance Group's ("RSA") life business, the assetsof which are currently managed by F&C under contracts entered into in 2002 atthe time that F&C acquired RSA's fund management operations. F&C currently manages approximately £22 billion of assets under these contracts.These funds generated some £28 million of management fees in 2004. It isexpected that termination of these contracts would not occur until 2006. Subjectto the timing of the withdrawal of funds, Resolution Life have estimated themaximum payment of compensation receivable by F&C would be up to £27 million. Howard Carter, Chief Executive of F&C, commented: "Naturally, it is disappointing for us that these contracts are being terminatedearly, particularly since, as Resolution Life has stated, this does not reflectany dissatisfaction with our performance. There will inevitably be cost savingsspecifically linked to the withdrawal of assets by Resolution Life that willoffset some of the loss of revenues. The rest of F&C's business continues toperform well and our integration remains on track." Contacts Howard Carter Chief Executive 020 7506 1168 Jason Hollands Director, Head of Communications 020 7506 1168 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Fondul ProprietateaRSA.L