Resolution notes recent press speculation and confirms that, whilst it did investigate the possible acquisition of Phoenix Group Holdings ("Phoenix") with both Phoenix and its lending banks, these talks have terminated.
As part of its UK Life Project, Resolution continually investigates a variety of bolt-on opportunities. Any acquisition must have a strong financial case and enhance returns to shareholders. The hurdle to executing any particular transaction is therefore high.
The UK Life Project continues to progress well, as evidenced by the Company's market announcement on 9 November. This set out the Company's intention to return a further £250 million to shareholders in the first half of 2012 subject to the delivery of planned capital synergies expected to be delivered in 2011 and following regulatory approval. The announcement also set out an expected increase in aggregate 2011 dividend to 19.89 pence per share, outlined the strong progress being made towards the Friends Life new business targets and announced strategic initiatives in outsourcing and the decision to create an in-house asset manager within Friends Life.
