Arc Legal Assistance has won the one million policy Liverpool Victoria administration account from Capita Insurance Services.
The loss of the account was confirmed by Liverpool Victoria technical claims manager Trevor Webb who said: "Following a competitive tender process the administration will now be held by Arc."
Capita Insurance Services managing director Bill Dye claimed that despite the adverse publicity Capita's legal expenses division had received over the past 12 months, the company was committed to the market.
He said: "January was a record month for us in terms of renewals and new business and we want to expand the sector over the following months."
The loss of Liverpool Victoria follows defections that include part of the Zurich account to Irwin Mitchell last year. It is understood that the Legal & General account currently held by Capita is due to go out for tender this year. Arc declined to comment.