Resolution falls to bottom of FTSE 100 News of plans for insurance group Resolution to split its operations were not well received on the FTSE 100 on Tuesday, sending its shares to the bottom of the index, which made overall gains. The company, which operates the Friends Provident brand, was formed in 2008 to buy underperforming insurance companies to form a larger, more profitable group. Resolution said a lack of further dealmaking opportunities in the UK meant it was looking at a plan to establish a standard-model business, open to new customers, and a closed book of existing policies which it would manage to generate cash. Its shares fell 6.4 per cent to 257.4p, the biggest fall on the top tier of the market by a clear margin. The losses came even as the company's operating profit for 2011 rose above forecasts to £681m from £275m a year ago. "The relative weakness of the embedded value and the cash emerging from the business is now an issue," said Kevin Ryan, analyst at Investec. This will inevitably make Resolution's plans for selling or merging the underlying life businesses in order to provide shareholders with a profitable exit more difficult. Compass Group, the world's biggest contract caterer by market value, fell 2.1 per cent to 654p after it warned its rate of revenue growth would slow in the first half of the year due to what it called "challenging economic conditions," especially in the UK and parts of southern Europe. Its loss was the second biggest on the FTSE 100. Overall, London's benchmark index was able to make gains - trading up 15 points at 5,917.49, a rise of 0.3 per cent - helped by hopes that the US Federal Reserve could embark on fresh economic stimulus measures. Riskier banking and mining stocks led the rebound. Among them, Royal Bank of Scotland was up 4.8 per cent to 29p after the BBC reported the UK government was in talks with Abu Dhabi to sell part of the bank. It was the best single gain on the FTSE 100. The rest of the sector also made gains. Barclays was 2.5 per cent higher at 254p, Lloyds Banking Group was 2.1 per cent higher at 36.3p, HSBC was 1.1 per cent higher at 567.2p and Standard Chartered rose 0.9 per cent to £16.11.