The deal will lead to the creation of one of the market leading providers in the corporate pensions and protection markets in the UK.
The AXA UK life business will be acquired and held by Friends Provident Holdings (UK) Ltd. This transaction is a logical next step in Resolution's consolidation strategy in the UK life and asset management sectors. Combined with the Friends Provident business acquired in November 2009, the deal creates a platform with a wide range of options for future consolidation.
Trevor Matthews, CEO Friends Provident commented: "Today's landmark deal combines two major players in the UK life and pensions market, both of which have a rich heritage. There is a good operational fit between both organisations. Bringing them together will make us one of the market leaders in our core businesses of protection and corporate pensions in the UK. This combined group will have a substantial offering in protection and corporate pensions products, and a real opportunity to deliver cost efficiencies allowing us to compete more effectively."
The deal will result in a strengthened management team with overall responsibility for the day-to-day operation of the combined business. Trevor Matthews will lead this team as CEO with Evelyn Bourke taking on the new role of executive director of strategy, capital and risk. David Hynam, currently group chief operating office of AXA UK, will join as executive director operations. Paul McMahon and Graham Harvey will be joining from AXA UK as managing director of corporate and managing director of individual respectively. Also as part of this acquisition, around 2,200 AXA employees will also transfer across to Friends Provident Holdings (UK) Limited.
Upon integration of the two businesses, Friends Provident will be renamed Friends Life. This is expected to happen in early 2011.
