KENT insurer Towergate has confirmed that talks are on-going, following press speculation about a partial sell-off.

The Sunday Times reported that Maidstone-based Towergate is in talks with a private equity house to sell a 25 per cent stake in its business.

The company, set up 11 years ago, is believed to be worth £3 billion.

The paper reported that executive chairman Peter Cullum is preparing to sell the stake to a private equity house, Candover.

Some of the £850m to be raised was reported to be distributed among the management team, and also re-invested in the business.

A Towergate spokesman said: "Towergate notes the recent press speculation regarding a possible refinancing.

"Consistent with our normal practice of evaluating all strategic opportunities, we have held a number of discussions relating to the capital requirements of the business.

"These discussions are at a preliminary stage and there is no certainty that these discussions will lead to any changes in the existing structure.

Towergate is Europe ’s largest independently owned insurance intermediary. Employing more than 4,000 people across 100 UK offices. In Kent it employs 200, in Maidstone, Sevenoaks and Whitstable

It controls in excess of £1.8bn of Gross Written Premium on an annualised basis. Since its inception the company has acquired 142 specialist insurance businesses.

Towergate provides niche insurance products, which include Formula One teams, private helicopters and holiday homes abroad.

Towergate Underwriting Group was launched in August 1997 by Peter Cullum , Paul Dyer and Tony Proverbs . The Folgate Partnership was founded in 2002 by Peter Cullum , Andy Homer and Kenny Maciver. In October 2005, Towergate Underwriting and Folgate Partnership merged to become Towergate Partnership.

Executive Chairman, Peter Cullum was the overall winner of the 2005 UK Entrepreneur of the Year awards sponsored by Ernst & Young and is the 2008 Management Today Entrepreneur of the Year.