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Resolution in Bupa insurance deal

James Moore,Deputy Business Editor
Friday 15 October 2010 19:00 EDT
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Resolution, the Guernsey-based company that wants to create a British "super-insurer", added another string to its bow yesterday with the purchase of Bupa's income protection, life assurance and critical illness cover business for £165m.

The firms are also looking at ways in which they can sell each other's offerings.

Bupa said the decision to sell the operation, which trades as Bupa Healthcare, was part of a decision to refocus strategically on healthcare products and services. As a provident association, Bupa is owned by its policyholders.

The deal is much smaller than others that Resolution has entered into. It took over Friends Provident for £1.9bn last year and followed with its acquisition of the lion's share of Axa's UK life assurance and savings arm for up to £2.75bn. However, the company says it is still looking for other deals to fulfil its UK life insurance ambitions.

Resolution was founded and is headed by Clive Cowdery, the entrepreneur who is a specialist in the field, although he has kept a relatively low profile recently with John Tiner, a former head of the Financial Services Authority, serving as the company's front man.

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