Resolution says it's in talks to buy Axa unit

Resolution Ltd, the UK buyout firm founded by Clive Cowdery, is in talks to buy Axa SA’s British operations as part of a plan to build a life insurer valued at $14.6 billion.

Discussions may lead to Resolution buying “the majority of Axa’s life assurance operations in the UK,” Guernsey, Channel Islands-based Resolution said in an e-mailed statement yesterday, without giving additional details. The Financial Times reported today that Cowdery is offering 2.8 billion pounds for the business.

The bid is part of Cowdery’s plan to increase Resolution’s UK life insurance holdings over 18 months as larger financial institutions, stung by recession, offload assets. Cowdery completed an initial public offering in December 2008 and bought Friends Provident for 1.9 billion pounds last August.

 

“The UK insurance market is saturated and Axa may decide to take the money” and seek expansion in Asia, like Prudential, said David Buik, a markets analyst at BGC Partners in London. “Cowdery is an extraordinarily ambitious person and he has been extremely successful with what I call, ‘asset stripping’ and I imagine the acquisition is possible,” he added.

Resolution closed 0.2 pence, or 0.33 percent, lower at 60.7 pence in London trading yesterday, valuing the company at 1.46 billion pounds.