Standard Life shares staged a relief rally today on news of its withdrawal from the bidding battle for closed life insurance firm Resolution.

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.

Royal & Sun Alliance is to raise £850m (€1.3bn) from the sale of the UK life insurance operation it closed to new business two years ago, it emerged today.