Consolidator is understood to be arranging a £100m acquisition war chest

Oval is believed to be undergoing a refinancing operation in a bid to boost its acquisition war chest, following private equity investment in rival consolidators Jelf and Giles.

Insurance Times understands that the broking group is seeking a loan facility of up to £100m. It currently has debt financing of £75m.

A senior market source said: “[The refinancing] is not a question of if, but when. All of the consolidators’ existing acquisition funds go up to 5 April. Oval is no different.”

In November chief executive Phil Hodson said that Oval intended to seek further acquisition funding after the broker boosted its war chest by £15m courtesy of Barclays Leveraged Finance and Lloyds TSB Corporate Acquisition Finance, who granted the consolidator an initial sum of £53m in March last year.

An Oval spokesman said: “We do not comment on speculation.”