Wellington is the subject of mounting speculation that it will the next Lloyd's insurer to leave London for Bermuda.

Industry analysts believe the insurer would be ideally placed to redomicile in the offshore reinsurance market if it set up a subsidiary on the island.

The company denied it was planning to redomicile, but did confirm that it was looking to establish an underwriting platform outside Lloyd's.

Numis Securities insurance analyst, Richard Gradidge, said a new trading platform could be formed as early as the end of the year to coincide with 1 January renewals.

"If you look at what happened last year with Amlin and Hiscox, they announced plans and rights issues towards the end of October or beginning of November. There is still time for Wellington to get operations up and running before the end of the year."

He said if Wellington set up a Bermuda platform the company could look to redomicile.

Talk of a possible move to Bermuda comes just weeks after speculation that the company was up for sale for around £120m, a report the insurer described as "utter rubbish".