Resolution sells stake in AmLife and AmFamily Takaful

Life insurance consolidation vehicle Resolution has sold its stake in AmLife and AmFamily Takaful to its joint venture partner AmBank Group of Malaysia.

Life insurance consolidation vehicle Resolution has sold its stake in AmLife and AmFamily Takaful to its joint venture partner AmBank Group of Malaysia.

The FTSE 100 company said it had disposed of its 30% interest in the insurance companies for 245m Malaysian Ringgits.

Resolution's operating business Friends Life will receive £50m following the sale and benefit of a currency hedge.

Friends Life said following discussions with AmBank Group it had decided the sell its interest. They had concluded the business required a "greater level of short term investment and commitment to meet its growth potential than was appropriate for Resolution".

John Van Der Wielen, Chief Executive Officer (CEO) of Friends Life International Division, said: "As a result of the international strategic review, we have decided that the focus of the international division will be entirely on its two wholly-owned businesses, Friends Provident International and Lombard International Assurance.

"These businesses now have plans that generate improved profit and cash returns for the group. AmBank has been a great partner and I am confident they will continue to be successful."

Andy Briggs, CEO designate of Resolution, added it was in their best financial interests to dissolve the joint venture.

"We have enjoyed working with AmBank to build AmLife and AmFamily Takaful into successful ventures.

"Whilst acknowledging the potential of the businesses, and having re-evaluated the businesses against our financial management criteria, we have concluded the right course of action is to sell them back to our joint venture partner. We wish the AmBank team every success in the future."

Resolution's shares were up 0.12% to 251.00p at 09:17 Monday.

RD

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021