German insurer Wüstenrot & Wüttembergische (W&W) is seeking a partner for its UK subsidiary Folgate Insurance.
The firm wants to double Folgate's premium income to around £320m.
Carlos Schmitt, who is group controller at W&W, said the group was in talks with more than one UK insurer but refused to comment on which ones were being targeted.
Chris Garland, Folgate's managing director, stressed the move would not come about as the result of being taken over.
He said: "Folgate Insurance is not for sale. W&W remains committed to significantly increasing the size of Folgate as an important member of the group. This increase can be achieved from both organic growth and acquired business. Folgate will assess opportunities to grow its size as they arise."
Folgate, which deals predominantly in the household insurance market, has a broker base of around 1,700, with approximately 200 staff based at its UK head office in Dorset. It does not operate as a direct insurer.
Industry speculation suggests that Folgate's new partner is also likely to be a broker-supporting insurer possessing a similar book of business to Folgate's.
However, Schmitt said the new company could be "either complementary or additive to the Folgate book". Schmitt added that the W&W was seeking a "balanced portfolio".
