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Friends Life receives £50m windfall from Resolution JV sale

Friends Life Group is set to recieve about £50m resulting from parent company Resolution’s sale of its 30 per cent interest in AmLife and AmFamily Takaful to its joint venture partner AmBank Group of Malaysia, along with a currency hedge.

According to a statement from Resolution, the deal was completed on 4 January 2013 for 245m Malaysian Ringgits (£49.3m) after deciding the business required more short-term investment and commitment than it was appropriate for Resolution to provide, and that the joint venture should therefore be amicably dissolved.

John Van Der Wielen, chief executive officer of Friends Life International Division, said: “As a result of the international strategic review, we have decided that the focus of the International Division will be entirely on its two wholly-owned businesses, Friends Provident International and Lombard International Assurance.

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Andy Briggs, chief executive designate of Resolution, said: “Whilst  acknowledging  the  potential of the businesses, and having re-evaluated the businesses against our financial management criteria, we have concluded the right course of action is to sell them back to our joint venture partner.

“We wish the AmBank team every success in the future.”