RNS Number:5205F
Royal London
10 October 2007



 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR
    FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
                       RELEVANT LAWS OF SUCH JURISDICTION

10 October 2007

       The Royal London Mutual Insurance Society Limited ("Royal London")

 #400,000,000 6.125% Perpetual Cumulative Step up Subordinated Guaranteed Notes
of RL Finance Bonds plc, guaranteed by The Royal London Mutual Insurance Society
                             Limited (the "Notes")
                             ISIN number M023696894

      Statement on Royal London Interest in Pearl proposal for Resolution

Royal London notes the statement issued today by Pearl Assurance PLC ("Pearl")
in relation to its communication to the Board of Resolution PLC ("Resolution")
that it is considering a possible cash offer for Resolution.

Royal London confirms that, following discussions with Pearl about the
possibility of Royal London acquiring certain Resolution assets should Pearl
make a firm offer to acquire Resolution and Pearl's offer be successful, Royal
London has entered into a binding agreement with Pearl. The agreement provides
that conditional on successful completion of the offer, Royal London would have
the right to acquire certain Resolution businesses and assets. The total
consideration payable by Royal London for such assets would be approximately
#1.25 billion (subject to certain post-closing adjustments). In addition, Royal
London has agreed to provide #0.3 billion of the debt funding for any offer to
be made by Pearl.

The assets to be acquired by Royal London are expected to include, amongst
others:

o        Scottish Provident, one of the leading providers of protection products
in the UK life sector

o        Scottish Provident International Life Assurance, an Isle of Man-based
offshore protection provider

o        The business and trading assets of the Resolution Management Services
Company relating to Life Division North, an administration and service business
company based in Glasgow

o        Blocks of in-force policies and the related asset management of those
policies

There can be no certainty that Royal London will acquire these assets in
Resolution given that the transaction is conditional upon Pearl making a firm
offer for Resolution and that offer being successful. A further announcement
will be made when appropriate.

It is expected that any acquisition of certain Resolution assets by Royal London
will not have a material impact on the rating of the Subordinated Guaranteed
Notes issued by RL Finance Bonds plc, a subsidiary of Royal London.

Enquiries:

Royal London:
Alasdair Buchanan         +44 (0) 87 0850 6070

Financial Dynamics:
Robert Bailhache         +44 (0) 20 7831 3113
Ed Gascoigne-Pees
Andrew Waterworth


Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the Takeover Code, if any person is, or
becomes, "interested" (directly or indirectly) in one per cent. or more of any
class of "relevant securities" of Resolution, all "dealings" in any "relevant
securities" of that company (including by means of an option in respect of, or a
derivative referenced to, any such "relevant securities") must be publicly
disclosed by no later than 3.30 p.m. (London time) on the London business day
following the date of the relevant transaction. This requirement will continue
until the date on which the offer becomes, or is declared, unconditional as to
acceptances, lapses or is otherwise withdrawn or on which the "offer period"
otherwise ends. If two or more persons act together pursuant to an agreement or
understanding, whether formal or informal, to acquire an "interest" in "relevant
securities" of Resolution, they will be deemed to be a single person for the
purposes of Rule 8.3.

Under the provisions of Rule 8.1 of the Takeover Code, all "dealings" in
"relevant securities" of Resolution by Pearl or Resolution, or by any of their
respective "associates", must also be publicly disclosed by no later than 12.00
noon (London time) on the London business day following the date of the relevant
transaction.

A disclosure table, giving details of the companies in whose "relevant
securities" "dealings" should be disclosed, and the number of such securities in
issue, can be found on the Panel's website at www.thetakeoverpanel.org.uk.

"Interests in securities" arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an "interest" by
virtue of the ownership or control of securities, or by virtue of any option in
respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Takeover Code, which can also be
found on the Panel's website. If you are in any doubt as to whether or not you
are required to disclose a "dealing" under Rule 8, you should consult the
Panel.)


Notes to Editors:

Royal London Group, is a specialist financial service provider. Its businesses
focus on those sectors of the market which value premium propositions, operating
through a number of brands:

   * Scottish Life - UK pensions market
   * Bright Grey - UK protection market
   * Scottish Life International - offshore investment markets
   * RLAM - fund management
   * RLAS - life and pensions administration

Royal London is one of the stronger life and pension companies in the UK, and
has a strong track record for with-profits performance.

Royal London is the largest mutual life and pensions company in the UK with
Group funds under management of #32.7 billion. Group businesses serve around
three million customers and employ 2,570 people (figures quoted are as at 30
June 2007).

Subordinated Liabilities

Perpetual Cumulative Step-up Subordinated Guaranteed Notes

On 14 December 2005 RL Finance Bonds plc, a wholly owned subsidiary of The Royal
London Mutual Insurance Society Limited (the "Parent company"), issued the
Perpetual Cumulative Step-up Subordinated Guaranteed Notes. The issue price of
the Notes was 99.676% of the principal amount of #400m. The Notes are guaranteed
by the Parent company. The proceeds of the issue were loaned to the Parent
company on the same interest, repayment and subordination terms as those
applicable to the Notes. The Notes have no maturity date but the issuer has the
option to redeem all of them at their principal amount on 15 December 2015 and
at three monthly intervals thereafter. Interest is payable at a fixed rate of
6.125% per annum for the period to 15 December 2015, payable annually in arrears
on 15 December each year.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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