Life insurer consolidation vehicle Resolution (RSL.L) is to return more than £500 million to shareholders.

The insurance company will commence a £250 million share buyback tomorrow (8 June), with a further £250 million to be returned in the first half of 2012.

The 2012 payment will be subject to planned capital synergies due during 2011 of £235 million.

The £500 million payment is in line with the company's policy of returning excess cash that is not required for further acquisitions in the short-to-medium term.

Resolution - set up by City veteran Clive Cowdery in 2008 - has made a number of acquisitions since launch in what it calls its 'UK Life Project', which aims to consolidate the life insurance industry.

Its biggest acquisition to date has been Friends Provident - since renamed Friends Life. It has also acquired the AXA UK life business and Bupa Health Assurance.

The group said it remained on track to make synergies of £112 million for the end of 2013 and is expected to reduce headcount by 400 during 2011.

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