Countrywide Group said attempts to sell its life insurance business had failed, and that discussions had been ended immediately. The company said it would proceed with the demerger of the business.
Countrywide said the board had taken several factors into account when reaching the decision, including; views expressed by shareholders, the board's view of the likely trading value of the life business as a separately listed entity, and the level, conditionality and certainty of the offers it had received for the life business.
According to a report, Countrywide chairman Christopher Sporborg said: "The view of shareholders and the board was that unless we could get a reasonable price and a clean deal, the right thing to do would be to demerge it.
"Of the two companies we had detailed discussions with, either the amount was not sufficient or they wanted us to retain all risks, which is not what we wanted to achieve."
Countrywide said the demerger would be subject to shareholder approval, with completion expected in the spring of 2004.
Under the proposed plan, Sporborg will continue to be chairman of the Countrywide group, as well as chairman of the new life insurer, revealed a report. It said Graham Kettleborough would become chief executive of the new Countrywide life arm.
