Equitable Life has failed to attract a bidder for its remaining business, its chairman said yesterday.

Vanni Treves, who in July said he hoped to "strike a deal by the end of the summer", said the sales process had been put on hold.

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

Equitable last year transferred £4.6bn of non- profit pension annuities to Canada Life and this year a further £1.7 bn of with-profits annuities to Prudential, but then invited third parties to make proposals which could offer "lower costs or greater expense certainty".

It said yesterday that "although various proposals were received, none would certainly provide improved prospects for policyholders".

Reports had claimed that Prudential, Swiss Re, Legal & General and Paternoster had all lined up an offer for Equitable.

Policyholders are still awaiting the government's response to the parliamentary ombudsman's report which found it guilty of 10 counts of maladministration, and recommended compensation. In an adjournment debate this week, the government was unable to indicate when it would respond to the report published in July.