Highway Insurance Holdings has announced that the Financial Services Authority has confirmed that its wholly owned subsidiary Highway Insurance Company Limited (HighCo) has completed the notice of requirements period.

This period restricted HighCo's premium limit during its initial three year trading period that began on 1 January 2000.

Following the placing and open offer completed earlier this year, Highway is increasing the paid up share capital of HighCo to £75m.

The paid up share capital, retained profits and quota share reinsurance arrangements already in place will allow HighCo to underwrite up to £315m of gross premiums in 2003, the company said.

Highway announced on 20 November 2002 that its application to exit Lloyd's had been approved and, from 1 January 2003 all of Highway's underwriting would take place through HighCo.

Highway chief executive Andrew Gibson said: "The completion of the notice of requirements period and our exit from Lloyd's represent significant milestones in the development of Highway. The increased premium limit and lower cost operating environment will allow us to make the best of future opportunities."

Topics