Resolution Life has walked away from HHG's closed life assurance funds, apparently ending the bid battle for the closed books that HHG has agreed to sell to Hugh Osmond, the pizza-to-pubs entrepreneur for £1.07bn.

But it is understood that Resolution, run by Clive Cowdery, the former chief executive of GE Insurance Holdings Europe, would have been prepared to raise its indicative offer for the funds from £1.15bn to £1.2bn, beating Mr Osmond's offer and leaving enough room to pay the £45m break fee he had negotiated with HHG.