That stock News

Resolution remains in the hunt for both large and small acquisitions after agreeing to buy health insurance to investment vehicle Bupa ￡ 102m.The, put in place by the contractor Clive Cowdery, wrong-footed Shearwater insurance market yesterday announcing a considerably smaller agreement that the. 86bn ￡ 1 it paid for Friends Provident in 2009 and. 75bn ￡ 2 that he left parts of UK business insurance from AXA earlier this year.

Stated BHA - described as a "bolt - on" by analysts - included income, life insurance protection and disease grave.La transaction units will be financed by "surplu capital" friends balance, thereby eliminating the need for a rights issue.

BHA will initially run as a standalone unit to be merged with friends and AXA them handset business in the year suivante.Résolution said the acquisition would increase its earnings and added that he could retrieve savings not specified in the agreement.

Trevor Matthews, Chief Executive of friends, said: "this acquisition will strengthen our enterprise risk group product range and improving the profitability of our protective activities."

Resolution aims to build a life with an embedded - value which measures the future profitability of existing businesses - insurer of ￡ with prior to the sale or floating the company in 2013.BHA is embedded 228 million worth of ￡, compared with existing ￡ 6bn resolution.

Other companies known to be in line with resolution focus is business UK Dutch insurer Aegon and clerical medical, is part of the Group of Lloyd banks.BHA agreement should be completed by the beginning of next year.

In response, Bupa said his decision to sell BHA helped to focus on its activities including all its services and products of Medicare United Kingdom resolution basic health care and Bupa concluded also talks about the sale of each of the other products, although discussions are at an early stage.

Resolution share rose 2.3% 253.8 p.

Deutsche Bank analysts said resolution was undervalued because investors fear need issues relating to fees to fund future acquisitions. ""Showing this transaction is that it is nevertheless possible management add value by bolt funded by organically Add-ons.

View the original article here