RAM and Axial to merge under Pearl plans

This comes as the Financial Services Authority gave Pearl change of control approval for its acquisition of Resolution.

Following the merger, Resolution Asset Management chief executive Gavin Stewart will become chief executive of the enlarged asset management business, which will have funds under management of around £80bn.

He said: "The Axial and RAM businesses complement each other extremely well with little overlap in the services they provide.

"The potential of the combined business is enormous and the challenge of ensuring it is achieved is one I am very much looking forward to."

Pearl Assurance chief executive Hugh Osmond added: "As a business we are excited by the potential of an integrated asset management operation. By combining the different skills of RAM and Axial we have the opportunity to create a business that is a best-in-class provider of asset/liability and investment management services to our own in-house life funds as well as third party institutional and retail clients."

Axial Investment Management was formed during 2007 to manage all of the assets of the Pearl Group Life Companies.

RAM is a £58bn asset management business. In addition to its own wide-ranging fund management capabilities, it also operates a number of joint venture boutique operations.

Jan Straatman – the current chief executive and chief investment officer of Axial Investment Management – will returning to the Netherlands to become ING Europe chief investment officer.