Resolution to return £500m 'excess cash' to shareholders

Scott Sinclair
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Buyout vehicle Resolution expects to have £500m of excess cash to return to shareholders over the next 12 months after completing its work examining the cash and capital position of Friends Life, its new proposition formed from the merger of Friends Provident and Axa's UK life and pensions business.

The cash falls into two components: excess cash currently held at the Guernsey top company, which is being returned immediately by way of a £250m share buyback; and surplus cash expected to be released from Friends Life group by the end of the year as a result of the implementation of £235m worth of capital synergies. Resolution's policy is to return excess cash released from its 'UK Life Project' to shareholders to the extent that it is not expected to be required for further M&A opportunities in the short to medium term. The consolidation vehicle founded by Clive Cowdery (pi...

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