Philip Moore has quit as chief executive of Friends Provident after the firm failed to complete a £8.6 million merger with fellow life assurer Resolution.

Moore had been in the job less than a year. Chairman Sir Adrian Montague will take on an executive role while the company looks for a new CEO. He will also undertake a strategic review of the business with results likely to be announced at the Q4 trading update in January.

A takeover of Friends Provident seems inevitable. Insurance groups AXA and Zurich Financial Services are understood to have already begun due diligence on the business. Analysts believes a merger with Standard Life may also be an option.

Shares in the company rose 5% to 167.8p on Wednesday morning. Barrie Cornes, an analyst at Panmure Gordon, believes Friends Provident could be taken out for between 200p and 225p per share. He said the group may need to raise up to £500 million to increase its solvency but the business remains an attractive takeover target.