According to press speculation Friends may announce a sale next week, with a price tag for the division tipped to be £30m.
Friends is also offloading its wealth management arm Lombard and the three bidders thought to be in the running are Swiss Life, CVC and Hellman & Friedman.
Lombard is expected to fetch around £700m.
A deal for the disposal of F&C is not expected to be announced before the third or fourth quarter.
Friends Provident declined to comment on market speculation.