Insurance giant Towergate is to be merged into a £500 million super group of UK companies generating £2.8 billion of gross written premiums.

The Maidstone-headquartered company, which employs 4,000 people across the UK, will be brought together with three other firms by its owners HPS Investment Partners and Madison Dearborn Partners.

It will continue to trade independently under the same name following the merger, two years after it was rescued by its bondholders after struggling to service debts of about £1 billion.

A spokesperson said no announcement is being disclosed on whether the move will affect jobs or offices.

It comes less than a month after it confirmed it will make 67 people redundant at its offices in Maidstone.

It also has offices in Sevenoaks and Faversham, the latter under the Capital and County brand.

The new business will combine with van insurance broker Autonet, private medical insurance broker Chase Templeton and general insurer Ryan Direct Group.

Towergate boss David Ross will become chief executive of the enlarged group, with Towergate chairman John Tiner taking the same job at the new parent.

A name for the new company will be announced by the autumn.

It will have an annual income of £500 million and employ more than 5,000 people.

Its owners have also adding international wholesale insurance broker Price Forbes to the group.

Its chief executive Mike Donegan will become executive director of the new parent company.

Mr Tiner said: “Today’s announcement demonstrates the tremendous confidence our major shareholders have in the businesses we are bringing together and the opportunities for further expansion.

“I am very much looking forward to working with HPS, MDP, David and Mike and the board in creating the UK’s leading diversified insurance platform and intermediary with global reach.”

Mr Ross added: “The coming together of these companies under a single holding company is a major milestone for the HPS and MDP insurance platform.

“The group will be a diversified business of scale with an unparalleled footprint and distribution presence comprising companies that are independent market leaders in their respective lines of business.”