UPDATE 2-Resolution still seeks deals as Friends sales dip

* Says is targeting further takeovers

* Possible Solvency II dilution won't change plans -CEO

* Sees H2 dividend of 2.72 pence per share * Shares down 0.7 percent

(Adds CEO comment, analyst reaction, shares)

LONDON, Nov 12 (Reuters) - British insurance-focused takeover vehicle Resolution (RSL.L) said it planned more deals as the sector remains ripe for consolidation, but reported weaker sales at Friends Provident, its first acquisition.

Resolution is pursuing more takeovers as forthcoming regulatory changes made consolidation "both desirable and inevitable", the company said in a statement on Thursday.

Resolution chief executive John Tiner said news this week that European Union regulators may dilute proposed capital rules previously seen as one of the main catalysts for consolidation was unlikely to alter the group's plans.

"There's still a lot of work to do before we find out where we end up," Tiner told reporters on a conference call.

EU insurance regulatory body CEIOPS indicated this week that it may relax aspects of the proposed Solvency II capital regime for insurers which, as currently drafted, could force the British industry to raise a further 50 billion pounds in capital. [ID:nLB226229]