Insurer Resolution eyes new deals, swings to profit

LONDON (Reuters) - British insurance buyout vehicle Resolution said on Tuesday it would hunt out further acquisitions, as its takeover of Friends Provident last year made it swing to a half-year profit.

The world's leading insurers are jostling for top position in a consolidating market, and earlier this week Aviva rejected a 5 billion pound ($7.80 billion) bid approach from rival RSA

for some of its core general insurance units.

Resolution said it was monitoring developments in the industry but declined to say if it was interested in any of the Aviva units or in the Paternoster insurance company, which may also be sold.

"Our job is to follow very closely developments in the UK life insurance industry," Resolution Chief Executive John Tiner told reporters on a conference call.

FRIENDS PROVIDENT DRIVES PROFIT RISE

Resolution was founded by insurance entrepreneur Clive Cowdery in 2008 with the intention of buying and merging at least two more insurers or asset managers before selling the enlarged company in 2012.

Last year, the company bought Friends Provident and in June, Resolution clinched a deal to buy AXA's UK life insurance business.

The company said it would examine further acquisition opportunities in Britain and overseas, although Tiner said one of its key priorities for now would be integrating the AXA UK business.

Resolution's acquisition of Friends Provident helped the company post an operating profit before tax of 203 million pounds for the six months ending June, compared to a loss of 7 million a year earlier.

The company also proposed an interim dividend of 5.46 pence.

Resolution shares were up 2.4 percent at 252 pence in early morning trade, among the top gainers on Britain's FTSES 250 mid-cap index.

"They were a decent set of figures, with recovering profits at Friends Provident, and the dividend has a yield of 6.6 percent," said Oriel Securities analyst Marcus Barnard, who has a "buy" rating on Resolution shares.

($1=.6408 Pound)

(Editing by James Davey and Louise Heavens)