Nick Prettejohn has quit as the head of the Prudential's UK business after three and a half years after losing out to Tidjane Thiam for the chief executive's job.

His departure, due in September, marks a setback for the Prudential, which he joined as chief executive of the UK division in January 2006.

Mr Prettejohn, aged 48, narrowly lost out to Mr Thiam in the bid to replace Mark Tucker as Prudential's chief executive earlier this year. Mr Thiam is the former head of Europe at Aviva who joined Prudential as its financial controller.

Mr Thiam will start as Prudential's new boss in October.

The departure of Mr Prettejohn immediately prompted speculation that the former head of the Lloyd's of London insurance market is being lined up to replace Sir Sandy Crombie as chief executive of Standard Life, although he is understood not be in the frame to run the Edinburgh-based insurer.

Prudential would not say today whether Mr Prettejohn had found another job.

Sir Sandy told the board of Standard Life that he would be stepping down after a 42-year career once a suitable replacement is found.

Standard Life said its search for a new chief executive was ongoing, but declined to comment further. The insurer is understood to have already compiled a list of suitable candidates.

Mr Prettejohn, who also sits on the practitioner panel that assesses the Financial Services Authority, the City watchdog, is highly regarded within the insurance industry.

He joined Prudential as it was preparing to embark on a fundamental review of its UK operations, including a possible sell-off of the division. He has since presided over a recovery in the performance at the domestic arm.

Mr Prettejohn said today that the UK business "now has a much clearer sense of purpose and momentum".

The Prudential today named Mr Prettejohn's replacement as Rob Devey, a 40-year-old former banking and insurance executive at HBOS, the beleaguered mortgage lender that is now part of the Lloyds Banking Group.

Shares in Prudential fell 8.25p to 405.25p, a fall of 2 per cent.

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