Two of the UK's biggest life insurance companies, Resolution and Friends Provident, are close to announcing an intended £8.3 billion ($19.35 billion) merger. Weekend media reports in London have speculated the announcement will set off a flurry of counter-offers.

The "merger of equals" will most likely see extrovert Resolution Chairman Clive Cowdery retain that position in the merged organisation, although some analysts have questioned his ability to deal with the conservative Friends culture. Mr Cowdery has made his reputation over the past four years as a consolidator of life funds that are no longer writing new business.

Resolution made its first foray into the open market when it bought Abbey National's entire life insurance business for £3.6 billion ($8.39 billion) in May. Media reports say he approached Friends Provident last year, but was initially rebuffed.

Friends Provident, which was formed 175 years ago, is likely to be swamped by a flood of counter-bids, according to London analysts. Or the merger could spark a wave of consolidations within the UK life insurance industry.