Resolution expands financial services activity

Resolution will act as a value catalyst across the broader financial services sector, restructuring businesses and asset classes within:

·         life assurance and savings

·         banking, credit and non-bank financial assets

·         asset management

·         reinsurance

·         general insurance

Resolution expects significant investment opportunities, as the financial services industry adjusts to its changing market realities.

Transactions and investments are expected to include:

- holding significant stakes in public companies to support the realisation of agreed objectives;

- partnering with public companies to co-invest for specific M&A and growth opportunities;

- full ownership and restructuring of financial services groups;

- leading the consolidation and roll up of attractive financial asset classes;

- offering transaction structures which enable existing owners of public companies to continue to participate in ongoing value creation.

Clive Cowdery commented:

"Resolution will accelerate the inevitable restructuring of financial services in the coming years in a way that bridges the gap between public and private equity. This approach enables Boards and shareholders to manage actively value release from their businesses whilst retaining the upside potential of a restructuring or consolidation."

For further information, please contact:

Clive Cowdery, Resolution Tel: +44 (0) 20 7930 6933

Alex Child-Villiers or Caroline Merrell, Temple Bar Advisory Tel: +44 (0) 20 7002 1080

Notes to editors

Background on Resolution

Today sees the completion of the sale of Resolution plc to Pearl Group for £5 billion. Original shareholders in Resolution that exercised their rights in the 2006 rights issue achieved an IRR of 28% per annum over 3½ years. Public markets investors achieved a 20% IRR per annum, following the creation of Resolution plc in September 2005.

Resolution was formed as a private company in 2003, creating value for investors by acquiring, merging and delivering synergies from life assurance and asset management businesses, and developing profitable new business capabilities.

In November 2004, Resolution bought the in-force UK life operations of Royal and SunAlliance for £850 million. In April 2005, it acquired Swiss Life UK for £205 million and integrated these businesses into one group called Phoenix Life Group.

Resolution plc was formed in September 2005 from the £2.3 billion merger with Britannic Group plc and became the largest specialist manager of in-force UK life funds. In September 2006, Resolution plc acquired the life businesses of Abbey National plc for £3.6 billion, part funded through a £1.54 billion rights issue.

All references in this announcement are to Resolution Ltd and not to Resolution plc or any of its subsidiaries unless expressly stated.