Underwriting agency AUA Insurance is on the verge of being bought by Keelan Westall, according to market sources.
AUA, which has a gross written premium (GWP) of around £12m, is the trading name of Allied Underwriting Agencies, part of the Allied Cedar Insurance Group.
A broker source said: "AUA has been on the market for ages.
"It has not necessarily come as a surprise that it is being sold."
Donald Porter, managing director of AUA, insisted it was not being bought.
"We do receive approaches fairly often but we are not on the market."
Keelan Westall also denied the claims.