* Value of new business up 5 pct to 204 mln stg
* IFRS operating profit before tax up 59 pct to 436 mln stg
* Full year dividend 21.14 pence
By Chris Vellacott
LONDON, March 18 British life insurer Resolution
achieved a 59 percent jump in pretax operating profit
last year, it said on Tuesday, as it heralded the completion of
its restructuring and signed a fund management deal with
The firm, set up by entrepreneur Clive Cowdery to buy
underperforming life insurers, said it would adopt its Friends
Life brand, dropping the Resolution name, while Cowdery will
step down as a non-executive director.
In an earnings statement, Resolution said it had met key
financial targets for 2013 and achieved 160 million pounds of
cost savings during a three year restructuring. It is now
focused on establishing itself as a "leading scale player" in
Britain's life and pension market.
"It is appropriate in this new phase to move away from a
restructuring brand," the company said.
The group also said it was transferring management of 12.2
billion pounds ($20.3 billion) of its clients' equity and
multi-asset funds previously run by F&C Asset Management
The firm is also taking a further 2.3 billion pounds of
fixed income assets from F&C, which is being bought by Bank of
Montreal, to be managed in house by its asset
management arm Friends Life Investments.
Chief Executive Andy Briggs said in a conference call with
journalists that the decision to end the relationship with F&C
was based on "driving economic value for shareholders."
The group said its free surplus stood at 331 million pounds,
up 10 percent from a year earlier, while the value of new
business rose 5 percent.
The full-year dividend was unchanged at 21.14 pence per
share, covered 1.1 times by the sustainable free surplus, and
the group said it would consider paying out more to shareholders
when coverage exceeds 1.3 times.