Ace is to slash its Lloyd's business by nearly a third as it turns away from the world's oldest insurance market.
The Bermuda-based company said there were better opportunities elsewhere, it was reported.
It is planning to cut its underwriting capacity from £900m this year to £652m in 2003, The Daily Telegraph reported today.
The move is likely to focus attention on the cost of doing business at Lloyd's.
The market has been criticised for charging high levies.
Established Lloyd's operators such as Wellington and Goshawk have this year invested outside the market and the lion's share of money pouring into insurance since 11 September has gone to alternative locations including low tax environments such as Bermuda.
