Exit, carrying a prize

9 June 2005 By Chris Hughes

The closed lifefund consolidators have few other options right now there is a sellers strike among the funds they might buy. This £2bn merger makes sense financially and strategically. The snag is that it appears to have two ambitious chief executives.

This content is for Subscribers only

Context News

Britannic, the Londonlisted closed life fund consolidator, and Resolution Life, its privatelyowned rival, have agreed a merger to create a new company under the Resolution name.

Resolution investors will receive Britannic shares giving them 45% ownership of the combined group.

At the end of 2004, Resolution's embedded value net of debt was £947m, while Britannic's was £1.1bn adjusted for recent acquisitions.

Resolution's shareholders include UK insurers Standard Life and Prudential, and hedge funds OZ Capital and Perry Capital. The company said its seven largest shareholders "are fully supportive of the enlarged group's strategy of growth by acquisitions".

Email a friend

Please complete the form below.

Required fields *