Resolution plc
Encyclopedia
Resolution plc was a UK insurance company headquartered in the City of London
. It was listed on the London Stock Exchange
and was once a constituent of the FTSE 100 Index
but was acquired by the Pearl Group
in May 2008.
, followed by the purchase of Swiss Life
's UK business.
In September 2005 Resolution Life merged with the FTSE company Britannic Group, who had closed to new business in 2003.
In 2006 the merged group bought the life business of Abbey National
, a transaction of £3.6 billion that brought entry into the FTSE 100.
On May 30, 2007, Resolution announced a strategic partnership with Capita which will result in the transfer of approximately two thousand staff in Customer Services and IT and a phased outsourcing of back-office customer services to India.
to create a new entity, Friends Financial, with a market cap of ~ £8.6Bn, however by September 2007 it was announced that Hugh Osmond's Pearl Group
, a critic of the proposed merger with Friends Provident, had undergone talks with Swiss Re
about a potential deal to take over Resolution, but talks broke down. On 10 October 2007, Pearl made a formal offer of 660 pence per share, worth approximately £4.5 billion, in conjunction with the Royal London Mutual Insurance Society. Standard Life
and Swiss Re also entered the bidding for Resolution, and for a brief period on October 26, 2007 their cash and shares bid, worth £4.9 billion was recommended by the board, which called off any deal with Friends Provident. Within a short space of time, Pearl came back with an all cash offer of 720 pence per share. In addition, Hugh Osmond
, chief executive of Pearl, now controlled a stake of 24.1% of Resolution's ordinary shares, which would have effectively blocked any planned merger from Standard Life as it would have required 75% approval from shareholders. In mid-November 2007, Standard Life pulled out of the merger and the offer from Pearl was recommended by the board to shareholders.
At the extraordinary general meeting
, held on January 8, 2008, the shareholders overwhelmingly agreed to the merger. Having been approved by the Financial Services Authority
in mid-April 2008, the acquisition was completed on 1 May 2008.
The Scottish Provident and Scottish Provident International brands and various in-force blocks of policies were taken over by the Royal London Group
, with the rest going to Pearl. The Resolution brand was retained by Clive Cowdery.
as an investment acquisition vehicle in December 2008 and resumed talks with Friends Provident in July 2009 but was rejected twice, though Friends Provident eventually agreed to a takeover in August 2009.
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
. It was listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and was once a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
but was acquired by the Pearl Group
Pearl Group
Phoenix Group is one of the largest providers of insurance services in the United Kingdom. It is listed on the London Stock Exchange and was formerly traded on Euronext Amsterdam.-History:...
in May 2008.
Early history
The Resolution Life group was formed in 2004 to provide a vehicle for life funds that have been closed to new business, but have liabilities extending many years into the future, nicknamed zombie funds. The first purchase was the life insurance business of Royal & SunAllianceRoyal & SunAlliance
RSA Insurance Group plc , commonly known as RSA, is a global general insurance company headquartered in London, United Kingdom. It has over 20 million customers in 36 countries across Asia, Europe, North America and South America....
, followed by the purchase of Swiss Life
Swiss Life
The Swiss Life Group is the largest life insurance company of Switzerland. The firm is headquartered is in Zurich. The Swiss Life Group has 7,500 employees and had assets under management of approximately CHF 133 billion in 2010.-Foundation and growth:...
's UK business.
In September 2005 Resolution Life merged with the FTSE company Britannic Group, who had closed to new business in 2003.
In 2006 the merged group bought the life business of Abbey National
Abbey (bank)
Abbey National plc was a UK-based bank and former building society, which latterly traded under the Abbey brand name. It became a wholly owned subsidiary of Grupo Santander of Spain in 2004, and was rebranded as Santander in January 2010, forming Santander UK along with the savings business of the...
, a transaction of £3.6 billion that brought entry into the FTSE 100.
On May 30, 2007, Resolution announced a strategic partnership with Capita which will result in the transfer of approximately two thousand staff in Customer Services and IT and a phased outsourcing of back-office customer services to India.
Takeover by Pearl Group
On July 25th 2007, Resolution agreed a merger with Friends ProvidentFriends Provident
Friends Provident was an organisation offering life insurance based in the United Kingdom. It was founded as a mutual Friendly Society for Quakers, although it was demutualised in 2001 and became a publicly listed company, no longer linked with the Religious Society of Friends...
to create a new entity, Friends Financial, with a market cap of ~ £8.6Bn, however by September 2007 it was announced that Hugh Osmond's Pearl Group
Pearl Group
Phoenix Group is one of the largest providers of insurance services in the United Kingdom. It is listed on the London Stock Exchange and was formerly traded on Euronext Amsterdam.-History:...
, a critic of the proposed merger with Friends Provident, had undergone talks with Swiss Re
Swiss Re
Swiss Reinsurance Company Ltd , generally known as Swiss Re, is a Swiss reinsurance company. It is the world’s second-largest reinsurer, after having acquired GE Insurance Solutions. The company has its headquarters in Zurich...
about a potential deal to take over Resolution, but talks broke down. On 10 October 2007, Pearl made a formal offer of 660 pence per share, worth approximately £4.5 billion, in conjunction with the Royal London Mutual Insurance Society. Standard Life
Standard Life
Standard Life plc is a long term savings and investment business, with headquarters in Edinburgh and operations across the globe. It has 1.5 million shareholders in more than 50 countries and over 6 million customers.-History:...
and Swiss Re also entered the bidding for Resolution, and for a brief period on October 26, 2007 their cash and shares bid, worth £4.9 billion was recommended by the board, which called off any deal with Friends Provident. Within a short space of time, Pearl came back with an all cash offer of 720 pence per share. In addition, Hugh Osmond
Hugh Osmond
Hugh Edward Mark Osmond is the founder of Punch Taverns, one of the United Kingdom's largest chains of public houses.-Career:Educated at Merton College, Oxford where he read Medicine, Hugh Osmond went to America in 1983 and worked in clubs for a while. He then joined a small investment bank in...
, chief executive of Pearl, now controlled a stake of 24.1% of Resolution's ordinary shares, which would have effectively blocked any planned merger from Standard Life as it would have required 75% approval from shareholders. In mid-November 2007, Standard Life pulled out of the merger and the offer from Pearl was recommended by the board to shareholders.
At the extraordinary general meeting
Extraordinary General Meeting
An extraordinary general meeting, commonly abbreviated as EGM, is a meeting of members of an organisation, shareholders of a company, or employees of an official body, which occurs at an irregular time. The term is usually used where the group would ordinarily hold an annual general meeting , but...
, held on January 8, 2008, the shareholders overwhelmingly agreed to the merger. Having been approved by the Financial Services Authority
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
in mid-April 2008, the acquisition was completed on 1 May 2008.
The Scottish Provident and Scottish Provident International brands and various in-force blocks of policies were taken over by the Royal London Group
Royal London Group
The Royal London Group is the UK's largest mutual insurance company, serving 3.1 million customers, with funds under management of £42.4 billion as at 31 December 2010....
, with the rest going to Pearl. The Resolution brand was retained by Clive Cowdery.
Relaunch as an investment vehicle
Resolution was relaunched by Clive CowderyClive Cowdery
Clive Cowdery is an English businessman who made a personal fortune in the insurance industry and has since donated large amounts to charity. He is closely associated with Resolution plc, which was among the first companies to benefit from the invention of the "zombie fund"...
as an investment acquisition vehicle in December 2008 and resumed talks with Friends Provident in July 2009 but was rejected twice, though Friends Provident eventually agreed to a takeover in August 2009.
Operations
Brands owned by the Group included:- Swiss Life (UK)
- Phoenix Assurance Ltd
- Bradford Insurance Company Ltd
- Royal & Sun Alliance Linked Insurances Ltd
- Alba Life Ltd, previously:
- Britannia Life
- FS Assurance
- Crusader Insurance
- Life Association of Scotland
- Foreman and Staff Mutual Benefit Society
- Brittanic Asset Management (previously Brittania Asset Management, now Resolution Asset Management)
- Britannic Assurance Plc
- Britannic Retirement Solutions Ltd
- Britannic Unit Linked Assurance Ltd
- Century Group Plc
- Century Life Plc
- Phoenix Life & Pensions Ltd
- Allianz Cornhill (life operations)