AN insurance giant is closing a Manchester office with the loss of 140 jobs.

Australian-based IAG blamed the increasing trend for people to buy insurance online for their decision to shut a call centre in King Street, which trades as People's Choice.

The jobs will be cut over the next 12 months.

The business is part of two IAG subsidiaries, Hastings and Equity Direct, who are also closing their offices in Leicester with the loss of 160 jobs.

Some Manchester staff will be offered the chance to relocate to Bexhill-on-Sea.

Edward Fitzmaurice, chief executive of Hastings and Equity Direct, said: "Every effort will be made to provide the affected employees with assistance and support in the search for alternative employment."

A spokesman for the company said the decision to move away from call centres handling general insurance was caused by `automation and a greater number of consumers choosing to buy their insurance over the internet'.