UK financial services group Britannic has said it has ended talks with other companies about a possible takeover bid.

Britannic said in March this year that it was looking for a merger partner.

But in a statement the company said the current turbulent market conditions meant that an offer was now unlikely to achieve "full value".

The company also denied speculation that the company was in financial difficulty following recent falls in share prices.

Still solvent

Britannic has expanded from its core life assurance operations and now offers mortgages, retirement products and fund management.

The financial strength of life insurance companies has come under focus in recent months following the falls on the stock market, which have cut the firms' assets.

But Britannic's chairman Harold Cottam denied rumours that the company was in trouble.

"We certainly aren't insolvent," he said.

"We monitor solvency on a regular basis and make sure our assets match our liabilities. We are not forced sellers of equities."

Going it alone

Analysts were disappointed that Britannic had failed to tie-up a takeover deal.

The company did not say who it had been talking to, but reports have said that the Dutch firm Aegon had been in negotiations.

As one of the UK's medium-sized operators, Britannic is expected to come under pressure from future changes to the savings industry.

Last week a review of the long-term savings market proposed simpler and cheaper products, which larger companies are expected to be in a better position to provide.

"We do not believe Britannic can survive on its own and it cannot seem to find a buyer," ABN Amro analyst Mikir Shah said.