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The mutual life assurer had invited third parties to make proposals for the business during 2008 to establish whether third parties could offer improved prospects for Equitable Life’s remaining policyholders. 

Equitable Life was also able to transfer of £4.6bn of non-profit pension annuities to Canada Life in 2006 and £1.7bn of with-profits annuities to Prudential in 2007 to place itself in a stable and secure financial position.

However, in a statement released today (27 November) the assurer's board said given the current financial and economic climate and having taken appropriate advice, it had decided that although various proposals were received none would certainly provide improved prospects for policyholders.

The statement said: "Consequently, the board has decided to put the sale process on 'hold' with immediate effect and to continue implementation of the best possible strategy for running the business until the current policies mature, known as 'run-off'. 

"This will include looking in detail at the company, people, structure and costs.

Vanni Treves, chairman of Equitable Life, said: "Having carried out this important test of our options for improving prospects for our policyholders, we will now focus on a stable and secure run-off of the society."