Friends Provident is set to announce a partial break-up this week, which could raise more than £1 billion.

UK life and pensions manager Friends Provident is set to announce a partial break-up this week, which could raise more than £1 billion ($1.98 billion). It is understood to be demerging its 53 per cent stake in fund manager F&C Asset Management and selling off its Benelux-based wealth management business Lombard under the restructuring plans. Lombard could fetch around £700 million, while the stake in F&C is said to be worth around £500 million, said The Sunday Telegraph. The move follows a strategic review carried following last November's failed £8.6 million merger with closed-life fund manager Resolution. It needs access to capital to help drive a business expansion. Friends Provident's core UK business is also to be restructured which will result in estimated annual savings of £30 million. A board meeting is to be held on Wednesday to ratify the proposals, which are due to be presented along with fourth quarter sales results on Thursday. Last week JC Flowers, the New York-based private equity firm, confirmed it was considering a multi-billion takeover of the business. The firm bought a 2.7 per cent stake in Friends Provident and said it would be approaching the board to talk about a deal worth a reported £4.1 billion.