Friends Life share price: Group publishes full-year results

Friends Life Group (LON:FLG) has this morning released its full-year results. Here are the highlights from Friends Life’s statement with more to follow:

Strong cash performance
· Sustainable free surplus £373 million, up 15% (2013: £325 million) and marginally ahead of guidance
· Continued strong performance in Corporate Benefits, positive net fund flows of £0.6 billion, taking assets under administration to £22.0 billion; significant improvement in underlying free surplus, up to £29 million (2013: £11 million)
· IFRS based operating profit before tax of £556 million, up 38% (2013: £402 million); · MCEV operating profit before tax of £498 million, down 7% (2013: £535 million); mainly due to reduction in VNB; · Value of new business down £47 million to £132 million (including £32 million reduction in Retirement Income VNB) as predicted trends continue;

**Proposed Acquisition of Friends Life Group Limited by Aviva plc;**
All share acquisition:
· 0.74 new Aviva shares for each Friends Life Group share; · The proposed second interim dividend includes a 10 pence per share enhancement to the 2013 final dividend; · Value share(iv) will be settled; · Accelerates Friends Life’s existing strategy, creating the UK’s leading insurance, savings and asset management business:

· Creates the UK’s largest back book(v) with the potential to release substantial capital synergies; · Leading market positions in corporate pensions and protection; and one in four retiring defined contribution pension customers(vi); · Proven track record in the successful integration and delivery of cost savings; · Court and shareholder general meeting to be held on 26 March, completion expected in the second quarter of 2015
As of 07:19 GMT, Thursday, 05 March, Friends Life Group Limited share price is 406.20p.