Swinton is to merge with online motor broker its4me.co.uk in a bid to bolster its online presence.
Swinton Group and its4me have previously traded as separate entities despite both companies being owned by French mutual insurance company, MMA.
The merger will take Swinton's policy book to 2.25m.
Its4me will continue to manage its operations from Norwich and will carry on as an internet only motor insurance broker but under the overall control of Swinton Group competing alongside Swinton's on-line and off-line offering.
Patrick Smith, chief executive and chairman of its4me and chief executive of Swinton, said: “It makes great sense for these two businesses to merge. It allows the group to offer a fully integrated online and offline service to our customers.
“The deal continues the growth strategy of Swinton, consolidating our position as the leading UK insurance intermediary with robust routes to market on the high street, via our call centres and on-line.”
