Resolution Ltd. (RSL), the insurance-buyout firm that was founded by Clive Cowdery, reported a 17 percent in increase in first-half profit, beating analyst estimates, as its U.K. division boosted new business.
Operating profit climbed to 191 million pounds ($295.3 million) in the six months from 163 million pounds in the year-earlier period, the London-based company said today in a statement. That beat the 180 million-pound estimate of 17 analysts surveyed by the company.
“We continue to make excellent operational progress in line with the clear and consistent strategy,” Chief Executive Officer Andy Briggs said in the statement. The results “reflect the attractive strategic outlook of the group and has been led by the U.K. division, where higher value of new business has been written at a lower cash cost.”
Resolution scrapped its initial acquisition strategy to focus on generating cash from its previous three purchases -- Friends Provident, Axa U.K. Life and Bupa Health Assurance -- while building its pension business. The stock has jumped 31 percent this year, giving the firm a market capitalization of 4.6 billion pounds.
The value of new business at the U.K. division jumped 41 percent to 89 million pounds from a year earlier, putting it “well on course” to meet a target of 155 million pounds for 2013, according to the statement.
Resolution also said it will pay a first-half dividend of 7.05 pence, in line with a year earlier.
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