Resolution, the acquisitive insurance vehicle linking with everything from Legal & General to Aviva, confirmed it was in talks about further takeovers.
The company reported a £41m profit for 2009 compared to £1m loss, but this only included a two month contribution from Friends Provident, bought last year. Chairman Michael Biggs said:
We see 2010 as a decisive year for many financial services groups as they redefine their business models in the aftermath of the global financial crisis and in the face of increasing regulatory burdens.
Resolution is in dialogue with a number of owners of UK life assurance and asset management businesses whilst, at the same time, remaining highly disciplined on delivering the mid-teens return we seek on behalf of public market investors.
Our priority is to build on the inherent value we see in Friends Provident by bringing to it the synergies and benefits of scale which will arise from our future acquisitions.
That sounds more like medium sized purchases rather than an attempt at a big fish like L&G, which would surely be out of its range by now. The company, which this week lost its place in the FTSE 100, has slipped 0.4p to 77p on the news.
Elsewhere Aviva is the biggest faller in the leading index, down 14.8p at 386.8p. But that is all accounted for by its shares going ex-dividend.
