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UPDATE 2-Resolution eyes potential overseas deals

Published 11/11/2010, 05:05 AM
Updated 11/11/2010, 05:08 AM

* Has ambitions in other jurisdictions incl. US - CEO

* Friends Provident 9-month sales 683 million sterling, up 35 percent

* Shares down 0.8 percent (Adds CEO comments, share price, detail)

By Myles Neligan

LONDON, Nov 11 (Reuters) - British insurance-focused takeover vehicle Resolution said it could pursue deals in the United States and elsewhere before completing its current plan to consolidate the UK life insurance sector.

"We definitely have a wider and longer-term ambition to build restructuring projects in other jurisdictions, and that would include, in time, the U.S.," Resolution Chief Executive John Tiner told reporters on Thursday.

Resolution's stock has tumbled 30 percent in the year to date against a 5 percent rise in the sector as a whole, making it one of the worst performing insurance shares in Europe. Analysts blaming the decline in part on concerns the company may launch big rights issues to fund future deals.

"Over time, where we see value opportunities for investments, and we are not diverted from delivery of value on the UK project, we may introduce our investors to other projects, but I want to emphasise that our priority is the UK," he said.

Resolution is looking at potential deals in the U.S. where life insurers' low stock market valuations have thrown up attractive acquisition opportunities, bankers and analysts told Reuters in August.

The company, founded by entrepreneur Clive Cowdery, aims to build up a British life insurer valued at 10 billion pounds ($16.15 billion) before floating or selling it by 2013.

It paid 1.8 billion pounds for life insurer Friends Provident in 2009, and this year bought most of Axa's British operations for 2.75 billion pounds.

Resolution also said Friends Provident's sales for the first nine months of 2010 were up 35 percent at 683 million pounds, with strong growth overseas outweighing flat UK sales.

Resolution shares were down 0.8 percent at 244.7 pence by 0910 GMT, tracking the Stoxx 600 European insurance share index, which was off 0.6 percent.

"Notwithstanding where the share price is today we remain extremely confident of delivering on this project," Resolution's Tiner said. ($1=.6192 Pound)

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