Michael Dawson, group chief executive at Cox, has hinted that the motor syndicate Equity Red Star may be withdrawn from Lloyd's if the market's latest reforms fail to deliver competitiveness.

He said: “Where the business is underwritten does not matter as far as we are concerned.

“What matters is where is the most competitive place for us to thrive as a business.

“The challenge for Lloyd's is to become a competitive place, which helps business to thrive.

“Lloyd's has recently announced plans to reduce the overall charge of operating the running of the business.

“However, within the Lloyd's environment, there are hassles with names, distribution, conflicts of interest and so on.

“We have to balance attractive parts and the hassles connected with it [Lloyd's].

“And that is just a business decision you take when you are making a decision on where your underwriting business can thrive.

“I can't comment on whether we will leave Lloyd's, I can only give the ingredients.”

Motor syndicate highway has moved the bulk of its book out of Lloyd's, citing penalising high administrative costs.