The shares of Resolution (LSE: RSL) climbed 2p to 352p during early trade this morning after the life group reported its third-quarter update and investors considered the group’s 6% dividend yield.
The FTSE 100 member reported “strong growth” within its UK division, declaring the value of new business had risen by 41% to £133m during July, August and September.
Retirement Income business within the UK division gained 78%, while Protection business advanced 14% and Corporate Benefits climbed 36%.
Resolution’s statement did admit its international division had seen new business slip £2m to £25m.
Other figures supplied in this morning’s update included a capital position of £2.1bn as measured on an Insurance Group Capital Adequacy basis, as well as ‘group available shareholder cash’ of £821m.
Resolution also confirmed its 2013 run-rate savings target of £126m had been achieved three months early.
Andy Briggs, Resolution’s chief executive, said:
“Our consistent strategy and focus on value is delivering and we are continuing to build on the momentum established in the first half of the year.“
“Our scale businesses, competitive advantage in growth markets and the improving economy mean that we remain well placed to continue to generate cash and enhance shareholder value.“
Within August’s interim results, Resolution reiterated its dividend policy and confirmed its intention to repeat a 21.14p per share for 2013.
That intention currently places the shares on a possible income of 6%.
