Resolution is preparing a "self-managed" exit from Friends Life in 2014 that would see the company split between a fit for purpose life company and a closed life fund consolidator.
In an update today, the acquisition vehicle founded by entrepreneur Clive Cowdery said it remains its intention to look for exit options involving mergers and acquisitions for its so-called UK Life Project, but that it is also important to develop an in-house exit strategy.
The "most attractive" self-managed option would involve a division of Friends into two separately listed businesses.
The first, OpenCo, would consist of the UK 'Go to Market' business units, the overseas businesses, Sesame Bankhall Group, and associated support businesses, while HeritageCo would consist of the UK Heritage business and associated support businesses including Friends Life Investments.
It said in a statement: "[The company] is now developing detailed implementation plans to ensure that such a division can be achieved by early 2014".
Resolution indicated last year it was not planning further major acquisitions and would settle instead for the three insurance assets it has bought in the past three years - Friends Provident, Axa UK Life and Bupa Health Assurance.
In March last year, it brought the three businesses together under the Friends Life brand.
Meanwhile, the company said it believes its strategic decision to stop selling single premium bonds, its nil-commission offering in corporate pensions and its good relationships with employee benefit consultants puts it in a good position to benefit from changes introduced via the Retail Distribution Review (RDR).
"Protection is outside the scope of the RDR regime and Friends Life's strong relationships with intermediaries and growing track record in tied distribution leaves it well placed in this product segment," it said.
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