Resolution sees weaker Friends sales

LONDON (Reuters) - British insurance-focussed bid vehicle Resolution (RSL.L) reported weaker sales at Friends Provident, its first acquisition, and said an end to growth in the life market had opened up further deal opportunities.

Friends Provident had sales of 873 million pounds in 2009, down 13 percent from 1 billion pounds the previous year, Resolution said on Thursday.

Analysts had expected sales of 760 million pounds, according to the average of six forecasts collected by the company.

Resolution added that the British life market had stopped growing, underscoring the need for industry rationalisation.

"The UK business continued to reflect a market which we believe is ex-growth," Resolution Chief Executive John Tiner said.

"This dynamic continues to demonstrate the need for consolidation of the UK life insurance industry."

Resolution was founded by insurance entrepreneur Clive Cowdery in 2008 to acquire and merge British life insurance and asset management companies.

The company bought Friends Provident for 1.8 billion pounds last year, and has said it aims to buy at least two more insurers or asset managers before selling the enlarged business in 2012.

Resolution shares closed at 74 pence on Wednesday, valuing the company at about 1.8 billion pounds.

(Reporting by Myles Neligan; Editing by David Cowell)