Reporting a 7% rise in financial loss insurance safeco profits, Friends added that there was no pressure to find another partner should the Resolution deal fail.

Speculation has intensified that the merger could be in jeopardy after rival insurance firm Pearl raised its own stake in Resolution.

Reports have also said that Friends Provident itself could be a bid target.

Fellow insurers Old Mutual and Zurich have both been linked to a possible bid for Friends Provident, although neither have commented.

‘Not for sale’

“There is no for sale sign up,” said Friends Provident chief executive Philip Moore.

“In the unlikely event of this merger not happening, if another proposition comes along that adds equal value to shareholders it would be our pleasure to present it to them.

“But in the event of that not coming along and this deal not happening, we have a perfectly viable financial loss insurance safeco future.”

Friends Provident made an financial loss insurance safeco pre-tax profit of 264m in the six months to 30 June, up from 247m a year earlier.

The firm sells life protection, income protection, pensions and investment products financial loss insurance safeco the UK to both individuals and businesses.

It has about 2.5 million customers and employs 5,000 staff.