SHARES in motor insurer esure have soared following reports the firm's biggest stakeholder is looking to sell.

Sir Peter Wood, who owns a 30.7 per cent controlling position, has been in talks with would-be buyers in a move that could trigger a full-blown sale of the business, according to the Sunday Times.

Shares rose more than six per cent as traders reacted to the speculation.

Sir Peter is reported to have held "informal" discussions over a possible sale, with an eye to having a deal in place next month.

An American insurance company is seen as the most likely buyer for the 71-year-old's portion, despite interest from private equity firms, the report suggests.

The firm, which has a market capitalisation of £1.2 billion, saw price comparison site Gocompare demerge from the company and list on the stock market on November 3 last year.

Esure, which owns brands such as Sheilas' Wheels, announced in August that first-half profits had surged off the back of rising prices and higher demand for its products.

The firm said that pre-tax profits rose 44.6 per cent to £45.1 million in the six months to June 30.

Gross written premiums grew 22.8 per cent to £393.3m in the period as boss Stuart Vann hailed a "great start to 2017".