Resolution is lining up potential companies to buy

GUERNSEY-REGISTERED buyout vehicle Resolution is eyeing up a first purchase in the region of £5bn to £7bn.

Its founder, insurance expert Clive Cowdrey, has so far declined to reveal specific targets or a timescale for a deal, except to say that there will be fewer insurers left in the UK once Resolution has completed its restructuring of the life sector.

'Our investors are expecting to put up £2bn to £3bn for deals. With new retained equity participation by vendors this becomes £5bn to £7bn.'

The Financial Times this week speculated that this amount would put most of the UK listed life and pensions sector apart from Prudential and Aviva, the largest two, within reach of Resolution.

Resolution chief executive John Tiner said its investors would prefer it if it did larger deals.

'It's not about rolling up smaller businesses and selling a larger company on, but about restructuring and freeing up the value of the separate parts.'

Resolution has been free to make investments only since the start of May after the Financial Services Authority ended an investigation into former directors of Resolution plc and certain actions of theirs.