Moneyway, the West Midland high street insurer owned by the Arbuthnot banking group, has been sold to acquisitive rival Swinton.
Arbuthnot refused to say how much it was getting for Moneyway, which has 90 employees and 19 branches and is part of Solihull-based Secure Trust Bank. Until 2007 the business traded as Secure Direct.
Arbuthnot said the sale is expected to be completed by June and will have a "positive impact" on profitability. The deal will leave Moneyway free to concentrate on specialist banking. It was said to be working on an "innovative banking solution" alongside its One Bill money management and Moneyfreedom debt management products.
"We have spent a considerable time establishing how to progress Moneyway and capitalise on the very particular relationship we have with customers," Moneyway chief executive Gary Jennison said. "We have struck a deal with Swinton whereby they will acquire our insurance branch network allowing us to concentrate on core propositions.
"Insurance has become a massively competitive industry and to be competitive in the high street is not easy. As a local broker we feel increasingly unable to offer the best deals to customers on every occasion, and that is asbolutely against brand values.
"Swinton are easily one of the most competitive insurance retailers and as we have in excess of 28,000 insurance customers we need to know they are in the right hands."
Of the existing Moneyway branches, 13 will be rebranded as Swinton and two will merge with existing Swintons. Moneyway will retain four core outlets in Cannock, Kings Heath, Coventry and Manchester.
Swinton, part of French insurance group MMA, said late last year that it planned to expand its existing 15-strong branch network in the West Midlands.
It said it had a £100 million war chest to fund acquisitions from independent brokers.
