Insurance Giants Set To Merge

Insurance Giants Set To Merge

Friday 13th July 2007

Friends Provident and Resolution two of the UK’s largest insurance companies are currently in talks to merge together thus creating a firm worth in the region of £8 billion.

The talks have come about after reports linked Friends Provident with Axa and Standard Life – with the two firms reportedly making buy out offers for the company. The new talks concerning the merger however have seen share prices for Friends Provident rising by 8%.

In a statement Resolution has stated that. "Friends Provident and Resolution believe that a merger would create significant value for both sets of shareholders," and the proposed deal will see Resolution shareholders control 51% of shares with Friends Provident owning the remainder.

The companies specialise in Life funds in which premiums are paid by consumers into life assurance policies and the company invests them in a range of assets, including equities, property, fixed interest securities and cash.