Hopes that there could be further bid activity among Lloyd's insurers hotted up this week, after KBC Peel Hunt became the latest stockbroker to voice the suggestion.

Its comments came on the back of Scor's audacious and unwanted advances for Swiss reinsurer Converium. In fact, Converium rejected Scor's advances as Insurance Times went to press.

Analyst Charles Coyne explained: "This should focus a degree of attention on the UK reinsurers at Lloyd's, which of course also write primary business."

Coyne explained that should Scor be unsuccessful in its pursuit of Converium, it "could do worse than turn to Lloyd's, which has no such alpine defences". He emphasised that "Heritage, Atrium and Amlin remain significantly undervalued."

As Insurance Times went to press, Heritage was trading at 104p, Atrium was at 246p and Amlin at 316p.

KBC's comments come a mere week after stockbroker Bridgewell said bid activity would drive valuations going forward.

The market has been rife with takeover tales in recent trading sessions. Talbot Underwriting is understood to have hoisted the for sale sign.

Others suggested that Munich Re could also be in the frame, with Keefe Bruyette & Woodes publishing a note on the sector saying it would "stick with the clear, organic upside opportunity in Munich Re". IT

Yvette Essen is stock market reporter for The Daily Telegraph