Australian insurer QBE has ruled out raising its bid for Lloyd's underwriting agency Limit following its approach a couple of weeks ago.

QBE has offered Limit a £1.20 per share in cash, which threw into doubt the merger of Limit with fellow Lloyd's agency Wellington. The terms of the proposed merger are for every Limit share, a shareholder will receive an Ensign share and Wellington shareholders receive 0.91 pence of an Ensign share.

Any recommended offer would be subject to conditions, including the recently announced merger proposal of Limit and Wellington Underwriting not proceeding, regulatory approvals and achieving a minimum acceptance level.