Lord Levene 'disappointed' at progress by Indian government to open up financial services industry.

Lloyd's is set to downgrade its presence in India after voicing concerns over the countries efforts to open up its financial services industry to foreign investors, according to the Sunday Telegraph.

The paper said that Lloyd's is withdrawing its main representative in India, where it has an office in Mumbai, after being unable to secure a licence to write insurance business locally and believing it has little prospect of doing so in the near future.

However, the report said it will retain the services of two junior employees in Mumbai, but has suggested that its senior representative seeks alternative employment.

Lloyd's chairman Lord Levene has visited India many times to lobby for the liberalisation of its foreign investment rules and is said to be unhappy that India is now the only major market in the world to block overseas companies from participating in the domestic reinsurance market.

Levene said: "We were very heartened by the discussions between the then Chancellor and the Indian government in early 2007 that the Indian reinsurance market would be opened up to foreign reinsurers.

"On the basis of that we appointed a senior representative, but despite the promises that were made it is now clear that there is absolutely no progress in sight. We are very disappointed."

Lloyd's is estimated to write $400m in business for the Indian market every year, added the paper.