Resolution, the buy-out vehicle launched by entrepreneur Clive Cowdery, is highly unlikely to make any further acquisitions and will instead focus on developing new life products.
The company announces it "will not contemplate acquisitions" that would dilute the returns it expects from recent acquisitions Axa, Bupa and Friends Provident.
Mike Biggs, chairman of Resolution, says the company is "confident the [UK life] project will deliver its targeted mid-teens returns", adding there will be a "high threshold" for evaluating any further acquisitions.
Resolution has targeted a return on embedded value of at least 10% per year on Friends Provident Holdings business within two years.
The company expects to make an internal rate of return (IRR) of 20% on individual protection business by 2013.
Through Friends Life it plans to launch specific over-50s propositions, simplified term assurance, and consolidate new business onto a single platform, targeting a gross value of new business of £80m within two years.
The company says returns on Friends Life's corporate pensions business are ‘unacceptably low' and vows to achieve an IRR in the mid-teens at least by 2013.
This, Resolution says, will be achieved through reshaping its sales team, and migrating schemes to the ‘more efficient' Friends Provident platform.
The company plans to expand into the annuities market, aiming to retain 50% of vesting pension funds rather than the current 30% within two years.
Resolution says it has an "appetite" for writing new annuity business and will look to enter the open market option annuity space.
