Royal London and LV= said they have ended talks about a potential merger of the two mutual life assurance companies.
The news comes just two days after the companies announced that they were holding exploratory talks.
LV= said it ended the discussions as it believes the companies' different mutual models mean a merger would not be in the best interests of LV= members.
Royal London first publicly threw its hat into the ring for LV= in December last year, after LV='s members voted against the management's plan to sell the company to private equity firm Bain Group for £530mln.
LV= said in today's statement that it will continue to operate as an independent mutual.
"The strength of LV='s business performance over the past 18 months combined with its operational progress has strengthened the board's belief in, and commitment to, the continuation of our status as an independent mutual," said LV= interim chair Seamus Creedon.
"We continue to maintain our strong capital position, are trading well and building a successful future for LV=, its members, employees and wider communities."
Royal London group chief executive Barry O'Dwyer said his company's merger offer had been made on the understanding LV= did not have a viable future as an independent company.
"For Royal London's customers and members, nothing changes. We remain committed to delivering great value products, backed up by market-leading customer service. We look forward to sharing a substantial level of profits with our eligible customers in April, as we normally do," O'Dwyer said.