Towergate is rumoured to be looking to buy mortgage brokerage John Charcol.
The insurance giant is believed to have pinpointed the brokerage as a potential acquisition target.
It was reported at the start of 2008 that the brokerage was up for sale with a £50m price tag.
It was bought by Bradford & Bingley in 2000 and then sold to a management-led consortium, backed by original founders John Garfield and Charles Wishart, in December 2004.
In the past, Towergate has made no secret of its desire to expand its IFA network and it raised over £100m in 2008 to pursue regional companies.
Neither Towergate or John Charcol could comment on the sale rumours.