Alexander Forbes is to close its Harrow office with the likelihood of "some redundancies"

The office, which currently employs 14 staff, will close at the end of the year.

A company spokesman said the move would eliminate duplication in dealing with property risks between Alexander Forbes' Harrow office and its City office, based at Bevis Marks.

The closure is also part of Alexander Forbes' strategy to create central hubs for different clients.

The spokesman said: "The company is increasingly looking to segment the client management, and certain offices will deal with a certain size of client.

"As the Harrow office is so close to the London office it makes sense to close it, and it will ultimately save on costs.

"Some staff will be relocated to London and there may be some redundancies, but we do not know at this stage.It is a very on-going process at the moment."

But one source said that the Harrow office also brokes construction and leisure risks and the move was prompted by a number of senior staff leaving the office, which led to a reassessment of its viability.

In November, Insurance Times reported that Alexander Forbes was piloting an initiative to centralise local back offices into regional hubs. The pilot is part of a plan to free up its brokers to spend more time developing profitable new client relationships.