Standard Life linked to resolution move

Standard Life emerged today as a possible gatecrasher to the merger of insurers Friends Provident and Resolution, after reports suggested the Edinburgh-based firm could be mulling a move on one of the parties.

The recently demutualised life and pensions giant is believed to have mandated long-term adviser Merrill Lynch for advice on a possible approach to Resolution, the closed life fund involved in a £8.3bn (€12.1bn) merger with Friends Provident.

Reports of Standard Life’s interest come as speculation mounts over a raft of other firms keen to break up the union.

Both groups appear to be firmly in play after unveiling their tie-up plans two weeks ago, with Swiss insurer Zurich and Old Mutual said to be interested in Friends Provident and closed fund insurer Pearl also rumoured to be setting its sights on Resolution.

Rumours of Standard Life’s potential interest comes as Friends Provident’s asset management arm F&C reported that it had swung into profit for the first time since it was created in October 2004, following the merger of F&C Group and Isis Asset Management.

The group reported pre-tax profits of £7.9m (€11.6m) for the six months to June 30, in contrast to the £29.2m (€43m) loss seen in the same period last year.