Up to 90% of Lovat International's business will originate from Spain in the next two years.

Last December, the Lloyd's broker was bought for an undisclosed sum by Grupo Diagonal, the largest Spanish privately-owned composite insurance broker.

Now Lovat is the only registered Lloyd's broker to be owned by a Spanish parent company and it will broke more Spanish business in the London Market.

Lovat managing director Javier de Mijangos said: "Currently 40% of our business is from the UK and the rest is from Spain and the Caribbean. In the next two years, 80% to 90% will be Spanish.

"Hopefully in a year or so we will be categorised as a Spanish broker."

Mijangos said Lovat would keep its name "for the time being", but would be placing new risks in Lloyd's. These would be areas which Grupo Diagonal focus on, including professional indemnity, directors' and officers', general third party liability and motor fleet.

"We have pinpointed areas like marine where we would like to expand," he said.

"We are already in conversation with underwriters on extended warranty and ten-year construction and builders' policies."

Relationships between the London Market and Spain have grown in the past two years following the European Convention, which allows Spanish brokers to place business overseas.

On 27 February, Lloyd's opened its first office in Madrid headed by Pablo Wesolowski.

In 1999, €58m (£35.4m) of Lloyd's business came from Spain. This rose to €84m (£51.3m) in 2000. Last year, Lloyd's was granted a licence to operate there directly.