Cost savings arising through IT consolidation are at the heart of a possible merger between life insurance firms Friends Provident and Resolution, the two firms said today.
The prospective £8.3bn merger between Friends and closed life company Resolution was confirmed in a statement which emphasised the possible savings arising from Friends’ IT credentials and Resolution’s recently signed outsourcing agreement with Capita.
“The potential synergies arising from a possible merger will reflect the already highly efficient nature of Friends Provident’s back office processing and Resolution’s recent outsourcing agreement with Capita, which will commence on 1 August,” the life firms said.
Resolution was established in 2003 is the UK’s biggest manager of closed life insurance – also known as zombie funds. In the past two years it has quadrupled in size by acquisition, particularly by buying Abbey’s life business last year.
Friends Provident has also grown in part through acquisition and has gained a reputation for effectively consolidating the IT systems of companies it has bought in the past.