Towergate, the Kent-based private insurance firm established in 1997 to provide insurance in niche markets ranging from holiday homes to cherished cars, is the subject of speculation that it could reach at least £3bn in a potential sale. 

The company, which holds the widest range of specialist and traditional products in the UK market, has hired advisory firm Lexicon to advise on a number of approaches it has received from private quity firms including Charterhouse, Candover, TA associates and Blackstone. According to a spokesperson no decision has been made to sell the business, with all enqiries being directed to Lexicon, although one of the groups is thought to have already offered close to £3bn.

Towergate is now Europe’s largest independently owned insurance intermediary. It has more than 3,500 staff operating out of 100 UK offices. Its founder and Executive Chairman Peter Cullum is a former winner of the ‘UK Entrepreneur of the Year’ award and is the current M&A ‘Deal Maker of the Year’, having expanded the company through more than 100 acquisitions.

In 2006 Towergate managed premiums in excess of £1.5bn, while earnings reached £94.4m, having risen 51%.

Mr Cullum, who holds a 65 per cent stake, could net as much as £2bn from a sale, although it is thought likely that the charitable trust owner, who funds children’s charities, would give some of the proceeds away. Half of the chairman’s £9.2m bonus was reportedly put into the fund last year.

Towergate, which was valued at £1bn last year after refinancing, has since soared in value after carrying out some of its biggest acquisitions to date including the purchase of Paymentshield, and appointing former Aviva head of UK operations Patrick Snowball as deputy chairman.