Student insurance specialist Endsleigh Insurance Services is to be bought by its management for an undisclosed sum.

The National Union of Students, which founded Endsleigh in 1965, is likely to keep its 14 per cent stake in the group.

Its Oxford office, now in High Street, was one of its first. It now has a second outlet in the city, at Oxford Brookes University, in Headington, plus another 127 on other university campuses and high streets in Britain.

Its owner, Netherlands-based insurer De Goudse, has reached a preliminary agreement to sell the group to managing director Mike Alcock and sales director Ian Passmore.

Goudse said it decided to part company with its UK subsidiary, in which it holds an 86 per cent stake, after deciding to focus on travel, health and expatriate insurance.

A spokesman said it was expected the sale would be completed by mid-February.

Cheltenham-based Endsleigh's managers are now negotiating with Zurich Financial Services, which also has its UK headquarters in the Gloucestershire town, to form a long-term strategic alliance.