The UK's largest closed-life insurance administrator, Resolution Plc, has posted a 80% increase in net profit for the first half of the year, largely thanks to the addition of a major acquisition.
Net income increased to GBP110 million from GBP61.2 million in the first half of 2005. The impressive gain was aided by Resolution’s acquisition of domestic rival Britannic last year.
The firm also added Abbey’s life insurance operation this year, although this business does not count towards Resolution’s H1 2006 results.
Operating profit totaled GBP115.9 million on a European embedded value basis (EEV), which was slightly above analyst expectations, Reuters has suggested.
While Resolution’s core business remains life insurance, which now also significantly includes open fund policies following the Abbey unit purchase; its asset-management operation also aided results. Profit from this division improved by a healthy 150% in the first six months of the year to GBP14.5 million.