Shares in Aviva fell sharply this morning after the insurer confirmed it was in talks with AmerUs.
According to reports, insurance sources said it would struggle to find fresh equity funding to back its bid.
The shares lost almost 3% in early trading which valued them at 731p.
Aviva's peer, Prudential swiftly followed suit easing over 12 points to 589p.
Meanwhile, AIM listed Broker Network, continued its strong run up, adding a point to take it to 189p.
The company recently acquired Towry Law Insurance Brokers - its largest acquisition to date. The shares have gained almost 30% since the beginning of June.