Life insurance may be re-classified by insurance companies

Wednesday, May 26, 2010

The Life insurance scene in the UK is beginning to change. Having made a huge amount of money through the buying and selling of insurance to British residents, Clive Cowdery’s company Resoultion Ltd. is beginning to feel the strain from the on going global economic crisis.

Resolution Ltd, established in 2009 emerged as one of the biggest success stories in the insurance industry having started in an unenviable period during a seventeen year slump in insurance stocks.

The company itself deals with the trading of British insurers with its largest deal to date being the take-over of the UK’s eleventh biggest life insurer – Friends Provident Plc . However, the changing landscape of healthcare, life insurance, motor and home insurance ; has seen a remarkable change in trading from the larger UK insurers – namely Legal and General Group Plc and Aviva Plc.

In an effort to raise funds and acquire valuable stock, it has been reported that Resolution Ltd. – who has tumbled by 23 percent; is beginning to focus on securing privately held insurers or sectors of international firms.

Due to the recent fall in Resolution’s trading, the firm has been reportedly valued at £2 billion and has been highlighted as one of the hoard of insurance companies affected by the recession.

Fund manager at Cavendish Asset Management – Paul Mumford, has suggested Aegon NV and Lloyds Banking Group Plc as possible targets for Resolution.

Mumford also links the recession with various companies’ revision of general operation. According to Mumford, such a revision may initiate a shift in the classification of life insurance as ‘non-core’