Lloyd's insurer Ockham is moving half of its motor book outside of Lloyd's while it waits to see if entry to the market is made more difficult.
Its interim results have provided firm evidence that the motor market is moving back into profit.
Chairman Allen Thomas said the improvement in trading for its motor business Highway, syndicate 37 and 2037, has been gathering pace.
"So much so that the rise in vehicle insurance costs was singled out for official mention in the report on UK prices by the Office for National Statistics on 17 July 1999," he added.
Chief executive Lord Poole added that half of the motor book, about £100 million in premiums, would be moved outside Lloyd's next year.
He added that he expected there would soon be stricter regulations imposed for those insurers who want to set up in Lloyd's.
The ease of entry and low start up-costs for insurers wanting to set up in the Lloyd's market, which has a worldwide licence, has been a thorny issue for many of the existing syndicates.
"We feel that it is being made more difficult to get into Lloyd's," he said.
"We will pause before moving the rest of our motor business out of the market."
Highway started the year with £12.6m of provisions in hand, which it has increased because of lower than expected investment returns for 1998, a forecast loss of three per cent to eight per cent.
But the insurer found no need for additional provision for 1997, forecast at between five per cent to ten per cent, and no provision at all for 1999.
The Group posts interim profits after tax of £500,000. This compares to a loss of £2.6m in 1998 before the exceptional gain of £7.2m on sale of Wise Speke.
