News Release
24 June 2010
Acquisition of the majority of AXA's UK life business
Today Resolution announced the agreed acquisition of the majority of AXA's UK life
assurance business (protection, corporate benefits and annuities) in a deal worth
approximately £2.75bn. The deal will lead to the creation of one of the market
leading providers in the corporate pensions and protection markets in the UK.
The synergies between Friends Provident and the AXA operations to be acquired
mean that the integration of the two organisations will deliver an enlarged group
with a focus on profitable new business and key product areas, able to benefit from
cost efficiencies while continuing to deliver high levels of service.
The AXA UK life business will be acquired and held by Friends Provident Holdings
(UK) Ltd. This transaction is a logical next step in Resolution's consolidation strategy
in the UK life and asset management sectors. Combined with the Friends Provident
business acquired in November 2009, the deal today creates a platform with a wide
range of options for future consolidation.
Trevor Matthews, CEO Friends Provident comments:
"Today's landmark deal combines two major players in the UK life and
pensions market, both of which have a rich heritage. There is a good
operational fit between both organisations. Bringing them together will make
us one of the market leaders in our core businesses of protection and
corporate pensions in the UK. This combined group will have a substantial
offering in protection and corporate pensions products, and a real
opportunity to deliver cost efficiencies allowing us to compete more
effectively."
The deal will result in a strengthened management team with overall responsibility
for the day-to-day operation of the combined business. Trevor Matthews will lead
this team as CEO with Evelyn Bourke taking on the new role of Executive Director of
Strategy, Capital and Risk. David Hynam, currently Group Chief Operating Office of
AXA UK, will join as Executive Director Operations. Paul McMahon and Graham
Harvey will be joining from AXA UK as Managing Director of Corporate and Managing
Director of Individual respectively. Also as part of this acquisition, around 2,200 AXA
employees will also transfer across to Friends Provident Holdings (UK) Limited.
Upon integration of the two businesses, Friends Provident will be renamed Friends
Life. This is expected to happen in early 2011.
Trevor Matthews, chief executive officer, continued:
"We are excited by the continued prospects for our business as the
driving force in Resolution's consolidation strategy for open businesses in
the life sector. We look forward to combining our capabilities with those
of AXA's UK life business and creating a model entity for the future."
- Ends -
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Notes to editors
About Friends Provident:
Friends Provident was originally founded in 1832 to alleviate the hardship of Quaker
families facing misfortune. Friends Provident's strategy today is to operate in
markets where it can deploy its award-winning strengths in technology and service
to gain competitive advantage. Since its demutualisation in 2001, the Company has
developed strong offerings in pensions and protection to complement its historic
With Profits business, and now prioritises international growth. Friends Provident is
fully committed to the principles of the FSA initiative 'Treating Customers Fairly'.
Friends Provident distributes its products through intermediaries in the UK and
around the world. Its key business lines in the UK are protection and corporate
pensions. Friends Provident International develops competitive savings, investment
and pensions products for a broad and diverse range of markets including Hong
Kong, the United Arab Emirates, Singapore and Germany.
Friends Provident owns the Luxembourg-based company Lombard, a leading pan-
European life assurance company that specialises in the use of life assurance as a
wealth management solution for high net-worth investors.
Friends Provident also owns Sesame Bankhall Group, a leading UK supplier of
intermediary support services to financial advisers. Sesame Bankhall Group provides
services to more than 12,000 financial advisers across the UK offering life assurance,
mortgages and savings arrangements.
Friends Provident has a 30% stake in AmLife, an insurance subsidiary of AmBank
Group, which operates in Malaysia.
Since 5 November 2009 Friends Provident has been part of the Resolution group
of companies www.resolution.gg.
For more information on Friends Provident including, photos, awards, fast facts,
presentations, and media contacts please visit the media section at
www.friendsprovident.com/media
Follow us on twitter: www.twitter.com/friendsnews
Forward-looking Statements
This announcement may contain certain statements that are, or may be deemed to
be, "forward-looking statements". In some cases, these forward-looking statements
can be identified by the use of forward-looking terminology, including the terms
"targets", "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or comparable
terminology. By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on circumstances that mayor
may not occur in the future. Forward-looking statements are not guarantees of
future performance. Friends Provident's actual performance and financial condition
may differ materially from the impression created by the forward-looking statements
contained in this announcement. In addition, even if Friends Provident's actual
performance and financial condition are consistent with the forward-looking
statements contained in this announcement, those results or developments may not
be indicative of results or developments in subsequent periods. Friends Provident
undertakes no obligation publicly to update or review any forward-looking
statement, whether as a result of new information, future developments or
otherwise.
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