The Wall Street Journal-20080130-Friends Names Matthews Chief On Eve of Review

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Friends Names Matthews Chief On Eve of Review

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A WSJ New Roundup

LONDON -- Friends Provident PLC said it hired Trevor Matthews from rival Standard Life PLC to be its group chief executive, as the insurer prepares to unveil results of a much-anticipated strategic review tomorrow.

Mr. Matthews, 55 years old, succeeds Philip Moore, who resigned in November after Friends Provident's failed attempt to merge with Resolution PLC. Mr. Matthews had been chief executive at Standard Life's main unit, Standard Life Assurance.

Friends is expected to announce sweeping changes to its business, including potential asset disposals.

Mr. Matthews said Friends is well placed to capitalize on opportunities and he plans "to put past uncertainties behind, and, with the team, profitably grow and develop the business."

An Australian-born industry veteran, Mr. Matthews has been credited with driving much of the turnaround at Standard Life of Edinburgh, a former mutual that listed in 2006.

Prior to joining Standard Life, Mr. Matthews held key positions at Manulife Financial Corp. and worked at National Australia Bank and Legal & General Australia.

"Trevor has the determination to make sure Friends Provident vigorously pursues the profitable opportunities to build shareholder confidence and value," Friends Chairman Adrian Montague said.

The insurer has been recently approached by U.S. private equity firm J.C. Flowers & Co., which said last week it was considering making an offer.

A Standard Life spokesman confirmed Mr. Matthews's resignation and said Group Chief Executive Sandy Crombie will lead the United Kingdom financial-services unit until a successor is appointed.

Standard Life, which launched a failed bid for Resolution last year, faces questions about its strategy.