Goshawk has announced that it is undertaking a strategic review of its business, which could lead to a sell-off.
The insurer said a sale is one of several options under consideration as it looks at "ways to maximise value", following this morning's downbeat profits warning.
Chief executive Chris Fagan said that no one had yet registered an interest in the business.
Selling Goshawk is just one of the alternatives open to management, he said.
Fagan said: "It's not the favoured option. There are common shareholders to most of the companies across the sector and they would encourage some consolidation."
"That's why we have appointed Dresdner Kleinwort Wasserstein (as adviser) to help us consider all the options, one of which might be an approach from someone else."
