UK insurer shares fall after takeover update

The UK’s biggest manager of closed life insurance funds today ended speculation that it could be taken over in a £4 billion-plus deal.

The UK’s biggest manager of closed life insurance funds today ended speculation that it could be taken over in a £4bn (€5.9bn) -plus deal.

Prudential and Standard Life had been seen as potential bidders after Resolution said in November that it was in discussions with various parties, including talks that may have led to an offer for the company.

However, shares in FTSE 100 Index listed Resolution fell 5% today as it said the takeover talks were now over, although it is still assessing potential business combinations which would not constitute an offer for the company.

Resolution, which has seven million customers after buying up various closed life funds, was valued at £4.4bn (€6.5bn) prior to today’s news.

The company has grown at a rapid pace following several deals to buy closed funds, including the acquisition of Abbey National businesses, including Scottish Mutual, Scottish Provident and Abbey National Life.