Provident owner decides it is time to move on

The United States giant, which paid 170m for Provident in 2007, is said to have appointed investment bank Goldman Sachs to handle the sale.

Provident operates in the motor insurance market. It was founded in 1966 as Halifax Insurance, offering motorcyle policies. The company now employs around 400 people.

The motor insurance market is highly competitive, although the market has hardened in recent months with rates rising.

A spokeswoman for Provident would not comment on the sale process and directed inquiries to GMAC in America.

A spokesman for GMAC told the Yorkshire Post: "We have not disclosed any additional information with regard to Provident since reclassifying it as a discontinued operation in accordance with US accounting rules.

"By definition, this simply means there is intent to sell. There is no timeline. It would be inappropriate for me to speculate with any additional comment at this time."

A spokeswoman Goldman Sachs declined to comment.

James Reader, the managing director of Provident, was unavailable for comment.