Consolidator Resolution reported a near four fold jump in UK profits for the first six months today while confirming splitting up life insurer Friends Life’s open and closed books.
The group announced in its half-yearly results today that Evelyn Bourke, Executive director, Strategy, Capital & Risk at Friends Life, will take over as chief commercial officer of the newly established legacy-based UK heritage business. However, chief executive Andy Briggs will continue to run the whole business.
The group’s pre-tax operating profit zoomed to £390 million in H1, 2011 from £151 million, reported over the same period last year.
The open business includes retirement income, protection and corporate benefits business units and each will be headed by a managing director.
“As a result of the strategy and subsequent related decisions announced in February, a number of business lines are no longer being actively marketed,” the report said.
“These lines will be managed in the UK heritage business alongside customers with legacy products that have previously been closed to new business,” it added.
UK operating profits jumped near four folds to £364 million in the first six months, from £99 million in H1, 2011.
Sesame Bankhall, Resolution’s IFA network, recorded nil profit for the same period, which was attributed to investments made in 2010.
“We announced strategic and financial objectives for Friends Life in February. Four months into this programme, the business is showing signs of delivery in a number of areas that demonstrate it is on a path to deliver against its targets in full,” said John Tiner, chief executive of Resolution Operations LLP.
“Market conditions remain unsettled but the Group’s robust balance sheet and disciplined risk management underpin our confidence in achieving these targets,” he added.
The business consolidator acquired Friends Provident in November 2009, AXA UK Life in September 2010 and BHA in January 2011.