THB Group is set to sell its Leeds-based broking division, THB Northern, to Broker Network, following the sale of its Glasgow operation Marshall Ewart & Graham to JW Group.
THB Group confirmed a deal for THB Northern was expected to be completed by the end of June, but declined to name the buyer.
Senior market sources linked the sale to Broker Network. But Broker Network chief executive Grant Ellis declined to comment.
THB Group said the sales were the result of a "strategic review" of THB Clowes, its provincial retail broking division, and was designed to focus its operations around its Lemington Spa base.
The company said it remained committed to growing the broking operations of THB Clowes "both organically and through carefully targeted business acquisitions".
JW Group is an independent broker with six offices throughout Scotland.
Industry sources had linked Giles Insurance Brokers with the sale before the announcement.