Barlow Lyde & Gilbert has swiped Royal & SunAlliance's personal line work from under the nose of Davies Arnold Cooper.
It is understood that the work has followed the common law team which recently departed from DAC, led by Malcolm Henke (The Lawyer, 17 April).
The decision to outsource the work to another firm coincides with Royal & SunAlliance's decision to recruit a raft of in-house lawyers to service claims of under £50,000.
The insurance giant has taken on a group of 20 lawyers from all over the country to be led by head of legal David Morgan. The Midlands team houses four members, managed by Sarah Padmore, a former associate at Edge Ellison.
It is expected that the Midlands office will expand in the same way as the Leeds office, which is set to take on four recruits. Three will join the Horsham office and the rest will be spread throughout the country.
DAC's personal lines group is not the most lucrative department, but one source says: "In PR terms it is a disaster for the firm."