UK insurer Britannic Group Plc has agreed to a 1.8 billion pound ($3.29 billion) merger with privately owned Resolution Life Group to create a specialist closed life fund business, according to Reuters.
The news agency reports that the merged group will adopt the Resolution name and brand and will have about 6 million policies and 35 billion pounds of life company assets. Although the deal is classified as a reverse takeover, Resolution’s Chief Executive Clive Cowdery said the deal was “a true merger of equals with no premium being offered on either side.”
Britannic will issue 164.2 million new shares to Resolution investors, who will hold 45.5% in the combined group, valuing Resolution at 835 million pounds based on Britannic’s Wednesday closing share price of 508.5 pence.