Royal London is upbeat on Pearl - Business - Evening Standard
       

Royal London is upbeat on Pearl

Despite taking a hit to the bottom line in difficult market conditions late last year, insurer Royal London is in confident mood over the planned acquisition by Pearl of Resolution.

The company today said net profit dropped to £181 million last year from £431 million in 2006. Group chief executive Mike Yardley acknowledged that tougher times had arrived but said the future remained bright.

He pointed to a surge in operating profit from £116 million in 2006 to £147 million as well as new business worth £61 million, up from £47 million.

Royal London also gave more details of what it expects from the Resolution deal. It became a party to the acquisition when Pearl Group, a critic of a proposed merger of Resolution and Friends Provident, launched an offer worth £4.5 billion.

Resolution shareholders have agreed the deal, which is not expected to close before the end of April.

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