Folgate Insurance's German owners are on the hunt for another UK general insurer.

Folgate's parent company is Wüstenrot and Württembergische (W&W). Director Carlos Schmitt said: “We're not looking to buy CGNU but there are some medium-sized players. It must fit with Folgate. It must be broker-oriented.”

Schmitt said the company would be flexible in its approach. “It could be shared participation with a majority stake or a minority stake, probably going in non-life insurance,” he said.

Schmitt made clear the company wanted to have a UK business worth more than £300m within five years. Folgate boss Chris Garland said the best the firm could achieve organically was £120m.

But Schmitt insisted the company would not rush into an acquisition.