North West-based Keogh Ritson has been dropped from Royal & SunAlliance's legal panel.
The insurance specialist, which counts CGU and AXA Insurance among its clients, has been dropped from Royal & SunAlliance's main line-up of firms but has retained a place as a nominated adviser on a number of insured companies.
It is understood that Keogh Ritson was not asked to tender for the work before being told it had missed out on the main panel.
It is not yet clear which other firms have been cut from the line-up but sources say that Dibb Lupton Alsop has kept its place.
Berrymans Lace Mawer, Vizards Staples & Bannisters and Davies Arnold Cooper have also been retained on the panel which has been split into two divisions with firms advising either "personal" or "international" claims.
Herbert Smith, Greenwoods and Beachcroft Wansbroughs have also acted for the insurer in the past but were unavailable to comment on their position.
Commenting on Keogh Ritson's loss, one insurance lawyer says: "I am very surprised, it is a very good firm."
However another source says: "Royal & SunAlliance was not one of the firm's bigger clients, it would be different if it had lost a client like Axa or CGU."
Royal & SunAlliance first began reviewing its law firm panel in October last year in an attempt to substantially reduce its legal costs across the board, from its high-volume work to larger industrial claims.
As part of the cost cutting exercise Royal & SunAlliance has been taking bulk litigation work in-house over the past two years.