Friends Provident is on the search for potential acquisitions in Asia that could take it beyond the Hong Kong and Singapore markets, though no specific deals are in the pipeline. The priority in Asia for Friends Provident though was the organic growth of existing operations.

Malaysia is a market in which the firm is "very interested", said David Knights, general manager in Hong Kong for Friends Provident International, who added that any deals would involve insurance rather than asset management businesses.

"There is nothing currently on the radar with regards to acquisition or strategic partnerships, but we are continually looking for an opportunity which we would see as the right fit," Knights commented.

UK-based Friends was downgraded by Moody's on Wednesday, with the ratings agency citing challenges to its revised strategy. The beleaguered firm has been overhauling its business since January, refocusing its core UK activities, cutting costs and putting non-core assets up for sale, including its stake in fund manager F&C.