Link Insurance Services is back in talks with another potential buyer, after its deal with Ockham Holdings was dropped a week ago.
A Link spokesman confirmed that Link had resumed discussions with a company, as yet unnamed, which had been in the running before Link went into exclusive talks with Ockham.
Link is a subsidiary of Lloyd's syndicate Kiln.
Its book consists mainly of motor and a small amount of personal lines business.
The spokesman said: "Those who previously showed interest have returned and Kiln is actively pursuing that interest."
Kiln first announced its plans to sell Link in March, following a strategic review of the company.
Ockham was given preferred buyer status in August but pulled out recently due to the recent market climate and rising reinsurance costs.
The spokesman said it was too early to name the new buyer or the state of negotiations.