AGEAS Insurance are proposing to make the number of cuts across its underwriting, claims and broker distribution teams at its Port Solent and Eastleigh hubs in Hampshire.

Chief Executive Andy Watson said: “As we are proposing to make 77 redundancies, we will aim to work with the relevant bodies to help colleagues as best we can through this unsettling time.”

A letter revealed to employees on Wednesday that the company said that the decision was due to its expense base being high to compete effectively against rivals.

Mr Watson also said the companies expenditure was simply too high to compete against some of the better market leaders and had to consider redundancies if it was to remain afloat.

The cuts follow Ageas axing of over 500 roles in Glasgow in January from it’s Kwik Fit Insurance Division due to consumer changes in the insurance market.

Mr Watson added: “This is a tough decision and one we’ve not taken lightly, because insurance will always be a people business and we know this affects people’s lives.”

“We recognise the very considerable efforts made by all of you to deliver our products and services. We’re very proud of what we provide to our brokers and customers, and we will make sure that they are not affected.”

A spokeswoman for Ageas added: “We can confirm that we have entered a consultation with some of our employees.”

The firm posted a loss of £47.4 million in 2016, blaming their stagnated performance on £109.5m deficit in the fourth quarter of 2016.

The company is expected to launch a formal 30-day consultation period with a decision on the cuts to be made by the middle of April.

Eastleigh MP Mims Davies said: "This is clearly very disappointing news amongst a buoyant local economy. Our area has a fantastic workforce with strong skills not least from the work that Eastleigh College is doing through apprenticeships. I will continue to work with local businesses to ensure that in these uncertain times they get a strong voice in Westminster for our area."