Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a611501
Resolution ditches plans for Friends Life IPOs
by Jun Merrett on Aug 15, 2012 at 09:18
Resolution has shelved its plans for IPOs of the Friends Life business and will examine other exit strategies as its operating profit before tax more than halves at £137 million.
Resolution announced in March that it had set a 2014 deadline for a ‘self managed’ exit of Friends Life, headed by chief executive Andy Briggs (pictured) involving its split into two businesses, OpenCo and HeritageCo.
But it said in its interim results for the first half of the year, Resolution said it had scrapped the plans of separate IPOs for the UK Go to Market and the Heritage business and was now looking at other exit strategies.
'Resolution Limited, the ultimate parent company of Friends Life Group plc has announced that it will no longer seek a specific exit event for its UK Life project and consequently the previously announced self-managed exit plan of separate IPOs of the UK Go to Market and Heritage business units is no longer envisaged.’
OpenCo consists of the UK Go to Market business units, the overseas businesses, Sesame Bankhall group and associated support businesses.
HeritageCo consists of the UK Heritage business and associated support businesses including Friends Life Investments, Friends Life's listed debt and the UK pension fund.
Friends Life group operating profit before tax more than halved to £178 million, down from the £406 million reported over the same period in 2011.
The company said the results reflected ‘lower expected investment returns on the in-force book, [and] a disappointing performance in the international business partly offset by reduction in costs of new business.’
Friends Life UK operating profit also decreased to £137 million, down £227 million from the £364 million reported over the same period in 2011. After the removal of the group’s one-off items, the UK profit is £32 million lower than in the same period in 2011.
Inflows into the UK Heritage business dropped to £20 million, compared to the £30 million reported in the first half of 2011 which the company said reflected the closure of bond products to new business in the second half of 2011.
News sponsored by:
Subscribe to Wealth Manager magazine and rack up CPD points
Citywire Wealth Manager has partnered with CISI to enrich the experience of subscribers to our magazine.
Today's top headlines
More about this:
Look up the shares
More from us
- Resolution sets 2014 deadline for Friends Life exit
- Friends Life unveils adviser charging proposition
- Friends Life UK sales boosted by Winterthur acquisition
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
on May 20, 2013 at 13:52