Standard Life’s £4.9bn (€7bn) bid to land insurer Resolution was dealt a major blow today after the firm’s largest shareholder stepped in with a higher offer on a dramatic day in the City.

British insurance group Standard Life confirmed today it is looking at gatecrashing the £8bn (€11.4bn) merger of Resolution and Friends Provident.

Life insurance firm Pearl Group could muscle in on an £8.6bn (€12.7bn) merger between rivals Resolution and Friends Provident, it was reported today.

Friends Provident wrote a new chapter in its 175-year history today after unveiling an £8.6bn (€12.8bn) merger deal to create a “significant” new force in the British insurance industry.