THE DEAL
In September 2004 NPIL was involved in the £850m acquisition of Resolution Life Group (“RLG”), a newly formed company that had agreed to acquire the life insurance business of Royal Sun Alliance (“RSA”). In December 2004, NPIL further supported RLG in its acquisition of the UK life insurance operation of Swiss Life.

In September 2005 RLG merged with Britannic Plc, and re-listed the combined group as Resolution Plc. This converted NPIL’s investment to liquid shares in the publicly traded company and allowed NPIL to realise their value.

THE NPIL DIFFERENCE
NPIL applied its ability to analyse a complex business and set of projected cashflows and was able to use its experience in financial assets to quickly understand and quantify the value in the business. The acquisitions were financed by a mixture of equity, debt and vendor preference shares.

THE BUSINESS
RLG was been formed to purchase life insurance companies that are closed to new business and will generate cash as the underlying portfolios run off over time. The principal businesses of R&SA Life are: two with profits companies (Royal & Sun Alliance Life and Pensions Limited and Sun Alliance London Assurance Company Limited) and two non-profit/unit-linked companies (Phoenix Assurance plc and Royal & Sun Alliance Linked Insurances Limited). Prior to the combination with Swiss Life UK and Britannic, the company managed over £24 billion of assets and 2.4 million policies. Each of these operations were closed to new business prior to RLG’s acquisition.

The Financial Services Authority authorises and regulates the Life insurance business in the UK.

Visit the Resolution Life Group website