RAMSEY CROOKALL & CO

EVENING REPORT

17 AUGUST 2010

The London market closed strongly after a firm start on Wall Street.

Insurance firm consolidator Resolution is going well after posting a £203 million first half profit after ‘additional financial discipline’ squeezed £211 million out of Friends Provident, snapped up last year for £1.9 billion. Resolution lost £7 million a year ago.

The firm, which also bought AXA’s UK life assurance in June for £2.75 billion, said new business profits jumped 153% to 81 million at Friends as sales on an annual premium equivalent basis increased 42% to £458 million.

Its still on the lookout for more life company acquisitions and hopes to have added another business to it portfolio by the middle of next year.

Rival Prudential, which recently published bumper results of its own, and Aviva, whose general insurance businesses on the UK, Ireland and Canada are being targeted by RSA, are both ahead.

Miners Eurasian Natural Resources, Antofagasta, Kazakhmys, Vedanta and Xstrata are among the best performers on stronger metal prices, but BHP fell back after making a $38 billion takeover bid for Canada’s Potash Corporation.

Water company Pennon, down 2p at 589p, has traded as expected since the year end in March and users in the South West will be pleased to know that the water supplier thinks a hose pipe ban is ‘highly unlikely’ despite the dry summer. Its waste management company Viridor continues to perform well in weak UK economic conditions and remains confident of growing full year profit.



THE FTSE AT CLOSED UP 74 @ 5350

THE DOW JONES AT 4.30 IS UP 138 @ 10,440

THE NASDAQ COMP AT 4.30 IS UP 19 @ 2201

Exchange Rate

GBP – USD 1. 56

GBP – EUR 1. 21