Cornhill has refused to confirm or deny market speculation that it is seeking buyers for its legal expenses insurer Lawclub Legal Protection.

A Cornhill spokesman rejected the suggestion that it has sent a message to the market indicating it is prepared to talk to potential buyers for the legal expenses business.

Suggested buyers for the business are said by market sources to include Capita Eastgate, which is said to be planning further acquisitions, and possibly other legal expenses insurers such as DAS. DAS and Lawclub are both based in the Bristol area.

The Cornhill subsidiary is a comparatively small player in the legal expenses market. It employs 55 people and its current turnover is around £18m.

Lawclub has recently secured several large-scale affinity deals, including a large account with National Accident Helpline.

Kieran Tierney, Lawclub business development manager, dismissed talk of the company's possible sale as “hogwash”.