Beachcroft and Davies Arnold Cooper are discussing a potential merger that would catapult the combined firm into the UK’s top 25 by revenue.

The pair said today that together they aim to create one of the largest law firms serving the insurance market, both nationally and internationally. Talks are ongoing.

Paul Murray, managing partner of Beachcroft, said: ‘Our merger discussions with Davies Arnold Cooper are driven by the opportunity to enhance how we work with clients in industry sectors in which both firms specialise, and in particular the insurance sector.

‘The combination of Beachcroft’s leading volume and UK insurance practice with Davies Arnold Cooper’s strong insurance and dispute resolution team in London, Spain and South America would create a distinctive, full-service offering for our insurer clients.’

Danny Gowan, senior partner at DAC, said: ‘In addition to creating a stronger offering to the insurance sector and increased investment internationally, a merger would provide significant advantages to our real estate, corporate and employment teams, which have grown significantly over recent years.’

Beachcroft, which can trace its roots through a series of mergers back as far as 1762, has a broad range of specialisms and has offices in the UK, Ireland, New Zealand, Belgium and Singapore.

Established more than 80 years ago, DAC has offices in London, Madrid, Manchester and Mexico City.

The firms recorded estimated joint turnover of £177m in 2009/10, with Beachcroft's 148 partners posting average profit per equity partner of £314,000 and DAC's 77 partners PEP of £278,000.