Friends Life Malaysian JV family takaful business

Friends Life joint venture in Malaysian family takaful business

Resolution Limited ("the Company") announces that Friends Life FPL Limited ("Friends Life"), a subsidiary undertaking of the Company, has signed a shareholders' agreement with AMAB Holdings Sdn Bhd ("AMAB"), a wholly-owned subsidiary of AmBank Group, in connection with AmFamily Takaful Berhad ("AmFamily Takaful") a joint venture company which will manufacture and sell Shariah compliant family takaful business in which Friends Life holds a 30 per cent shareholding.

Friends Life and AMAB were conditionally granted a licence to manufacture and sell takaful business, which is the Islamic alternative to conventional life insurance business, through a new joint venture company in Malaysia in 2010. The establishment of AmFamily Takaful has been subject to the prescribed Malaysian regulatory start-up process and commencement of trading is subject to final approval from Bank Negara Malaysia the Malaysian regulator.

Initial paid-up capital of AmFamily Takaful will be RM100 million (approximately £20.4 million*), of which Friends Life is contributing RM30 million (approximately £6.1 million*) in cash with the remaining RM70 million being contributed in cash by AmBank Group. The Chief Executive Officer of AmFamily Takaful will be Wan Zamri Wan Zain.

John Van Der Wielen, Managing Director International, Friends Life said:

"This is an exciting development and positions us well to participate in the ongoing growth in the Asian Region."

* Based on exchange rate as at 13 December 2011.

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Resolution Limited

The Company's current restructuring project is in the UK life and related asset management sectors (the "UK Life Project").

The Company's ordinary shares were admitted to the Official List and to trading on the main market of the London Stock Exchange in December 2008. The Company transferred to a Premium Listing as it completed its first acquisition, Friends Provident Group plc, on 4 November 2009 and is subject to those provisions of the Listing Rules that apply to overseas companies with a Premium Listing. The Company completed its second acquisition, the majority of the AXA UK life business, on 15 September 2010. On 31 January 2011, the Company completed its third acquisition, the shares and business of Bupa Health Assurance Limited.

A copy of this announcement is and will be available, subject to certain restrictions relating to persons resident in restricted jurisdictions, for inspection on the Company's website at www.resolution.gg

For the avoidance of doubt any other information contained on the Company's website does not form part of this announcement.