Lloyd's giant Amlin will continue to step back from the UK commercial market over the coming months after its portfolio decreased further in 2006.
The Lloyd's insurer reported record pre-tax profit of £342.7m, up 84% on 2005. But it admitted that the UK commercial portfolio had continued to contract as compet- ition for fleet motor, professional indemnity and property insurance meant it lost business and struggled to write profitable new accounts.
Consequently the division, which writes motor and liability business, combined with a small property account, reduced its underwriting activity with overall renewal rates reducing by 2.7%.
Amlin said in its preliminary results for 2006: "Commercial motor and UK liability business remains under pressure and we will continue to decline business where we do not consider it adequately priced.
"Conditions for our UK commercial business should start to improve in 2008, if not before. If this is the case, improving performance in this area will help offset the softening of conditions in our marine and non-marine areas which appear to have peaked."
Meanwhile, the company has dismissed suggestions that it could become the next Lloyd's insurer to redomicile to Bermuda.
But chief executive Charles Philipps reportedly said that following Hiscox and Omega, which redomiciled in 2006, would not have "an enormous franchise benefit".