Resolution has cancelled an intended £250m payout to shareholders after reconsidering the expected capital requirements of Friends Life.
The group had intended the make the payout in the first half of 2012. It made a similar return to shareholders in 2011.
But it now said it would be inappropriate to make another payout following "careful consideration of the expected future capital requirements of Friends Life Group against a backdrop of heightened investment, economic and regulatory uncertainty".
Resolution said the group's capital position remains robust and that Friends Life had, at the end of June, an estimated IGCA surplus of £1.9bn.
Mike Biggs, chairman of Resolution Limited, said: "I understand that shareholders will be very disappointed that the Board has concluded not to return a second £250m of capital, but it would be inappropriate to do so against the backdrop of heightened investment, economic and regulatory uncertainty."
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