Sale of stake in Amlife

7 January 2013

Resolution Limited

Sale of 30% stake in AmLife and AmFamily Takaful to AmBank Group

Resolution Limited ("Resolution" or the "Company") announces that the sale of its 30% interest in AmLife and AmFamily Takaful to its joint venture partner, AmBank Group of Malaysia completed on 4 January 2013 (for a sale price of 245 million Malaysian Ringgits). As a result of the sale and the benefit of a currency hedge, Friends Life Group plc ("Friends Life") will receive cash of approximately £50 million.

Following discussions with the AmBank Group, Friends Life concluded that the business required a greater level of short term investment and commitment to meet its growth potential than was appropriate for Resolution to provide. Friends Life and AmBank Group therefore amicably concluded they should dissolve the joint venture. Under the terms, Friends Life was required to sell its interests in the businesses back to the AmBank Group.

Resolution and its operating business, Friends Life, are committed to the development of its International Division through Lombard International Assurance S.A. and Friends Provident International.

Commenting on the transaction, John Van Der Wielen, CEO, Friends Life International Division, said:

"As a result of the International strategic review, we have decided that the focus of the International Division will be entirely on its two wholly-owned businesses, Friends Provident International and Lombard International Assurance.

These businesses now have plans that generate improved profit and cash returns for the Group. AmBank has been a great partner and I am confident they will continue to be successful."

Commenting on the transaction, Andy Briggs, CEO designate of Resolution, said:

"We have enjoyed working with AmBank to build AmLife and AmFamily Takaful into successful ventures. Whilst acknowledging the potential of the businesses, and having re-evaluated the businesses against our financial management criteria, we have concluded the right course of action is to sell them back to our joint venture partner. We wish the AmBank team every success in the future."

For further information, please contact:

Investors/analysts

Neil Wesley, Resolution Operations LLP +44 (0)20 3372 2928

Media

Alex Child-Villiers, Temple Bar Advisory +44(0) 7795 425580

Notes to Editors

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 Resolution's website does not form part of this announcement.