Friends Life Group is the new name for Resolution - Old thread here




Friends Life Group Limited is a FTSE 100 listed company focused on providing financial security for over five million customers, with a heritage dating back over 200 years.

Our strategy is focused on helping customers to save for and achieve a good standard of living in retirement and on providing them with financial protection during their working lives.

The business is made up of three divisions:

A specialist Heritage division, looking after customers with products which are no longer actively marketed for new business. The heritage division also include Friends Life Investments, providing asset management services for Group businesses
The UK division, which provides core business lines of corporate benefits, retirement income and protection.
The International division, which provides savings, investment and protection products for expatriates and local nationals in Asia and the Middle East.
Friends Life has the expertise and experience to meet the changing needs of its customers as the life and pensions market continues to evolve. Friends Life is a sustainable business which supports its customers’ financial futures throughout all key life stages whilst creating value for shareholders by growing cash generation and generating returns.

Company Website

Financial Calendar

Recent Broker notes

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Recent Market news

Friends Life Group Fundamentals

Hi CC - that was my initial take based on the FLG financial calendar, but as has been mentioned over the road, it may well all be concluded in this financial year - which would obviously make much more sense and be tidier.

I hold AV. & FLG in my SIPP and sold the FLG in my ISA last week @367.5p.

My plan currently is to hold until completion.

Thanks guys. I don't have a firm plan but I am minded to keep until completion but I'm struggling to understand exactly when the dividend would arrive as last year xd date was early April. I'm assuming if the transaction is brought forward to January then the dividend will be dragged forward to then but that's not 100% clear to me.

I am also minded if AV. were to drop to say 480 to buy some AV. at that point as a protection in case it falls through.

Just sold @405p - good luck to other holders.

Final Results

Results for the year ended 31 December 2014
Strong cash performance
· Sustainable free surplus £373 million, up 15% (2013: £325 million) and marginally ahead of guidance

· Continued strong performance in Corporate Benefits, positive net fund flows of £0.6 billion, taking assets under administration to £22.0 billion; significant improvement in underlying free surplus, up to £29 million (2013: £11 million)

· IFRS based operating profit before tax of £556 million, up 38% (2013: £402 million)

· MCEV operating profit before tax of £498 million, down 7% (2013: £535 million); mainly due to reduction in VNB

· Value of new business down £47 million to £132 million (including £32 million reduction in Retirement Income VNB) as predicted trends continue

Capital position robust
· Available shareholder assets £1,066 million

· IGCA(i) surplus £2.3 billion, coverage ratio 240%

· Economic capital surplus(i) £3.7 billion, coverage ratio 196%

· Full year dividend of 31.15 pence per share subject to completion of the Proposed Acquisition by Aviva plc (2013: 21.14 pence per share)(ii)

Business highlights
· Successful reallocation of £760 million of annuities from with-profits funds, resulting in a sustainable free surplus ("SFS") benefit of circa £7 million per annum from 2015

· Recapture of £1.6 billion of assets backing annuities in November, resulting in a SFS benefit of circa £13 million per annum from 2015

· Further reallocation of £665 million of annuities completed in the first quarter of 2015 resulting in a SFS benefit of circa £5 million per annum from 2015

· Friends Life has responded strongly to the legislative and regulatory changes to pensions and workplace savings:

· New individual customer platform My Savings on track to be launched in April 2015

· Developed a range of products and services to meet new regulatory requirements, including an income tool, investment risk appetite assessments, retirement planning and tax information and tools

· Invested in the creation of a Retirement Information Centre

· Annuity sales down only 15%, outperforming the market which is down 38%(iii)

· Efficient cost management, with operating expenses down a further 2% to £549 million

· Auto-enrolment activity, which peaked in the first half of 2014, has enrolled 957 schemes this year, contributing to a net increase in members of 169,000 in 2014

· Following the re-platforming of the new business, the International division is on track for re-platforming in-force business during 2015

· Successful sale of Lombard for £316 million, completed in October 2014


Proposed Acquisition of Friends Life Group Limited by Aviva plc
· All share acquisition:

· 0.74 new Aviva shares for each Friends Life Group share

· The proposed second interim dividend includes a 10 pence per share enhancement to the 2013 final dividend

· Value share(iv) will be settled

· Accelerates Friends Life's existing strategy, creating the UK's leading insurance, savings and asset management business:

· Creates the UK's largest back book(v) with the potential to release substantial capital synergies

· Leading market positions in corporate pensions and protection; and one in four retiring defined contribution pension customers(vi)

· Proven track record in the successful integration and delivery of cost savings

· Court and shareholder general meeting to be held on 26 March, completion expected in the second quarter of 2015

Small punt here, chart looking good and 24.1p div 10/04

So, Farewell, Friends Life
A short and sweet dalliance with a high yield stock and a very nice profit. Now, do I stick with AV., or sell and find a new home for the cash?