Shares of insurer Resolution deemed a ‘hold’

13th August 2013

Insurer Resolution surpassed City forecasts in its market update today as it announced that first half profits rose 17 per cent writes Philip Scott.

The interim dividend was maintained at 7.05p per share and the current yield of around 6.5 per cent is attractive say brokers.

Over the past 12 months the FTSE 100 listed firm saw its shares surge by 49 per cent, and by 25 per cent in just the past six months.

Sheridan Admans, investment research manager at  retail stockbroker The Share Centre says:We continue to recommend Resolution as a ‘hold’ as we hope over time its revised strategy will lead to a dynamic business, with a progressive dividend policy.

“However, strategies at the firm have come and gone in recent years and while we find today’s news encouraging we would like to see some momentum in the strategy. Interest rate fluctuations in some counties should help to support companies in the sector generate free surplus ahead, making us more up bet on the sector.”

For its part, the broker consensus on share data hub, Digital Look has the stock pointing towards a ‘buy’.

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