Liberty Syndicates will pull back on several lines of business in 2007 after announcing a £190m cut in its underwriting capacity.
The Lloyd's insurer has reduced its capacity from £912m in 2006 to £725m for 2007.
Mark Butterworth, chief operating officer, Liberty Syndicates, told Insurance Times: "We are cutting back for the second time in three years. We look at market conditions and adjust our capacity accordingly."
Liberty Syndicate's capacity fell from £794m in 2004 to £712m in 2005.
The reductions will be felt in Liberty's treaty property portfolio, with high risk catastrophe exposed business also decreasing.
Butterworth said: "Like all CAT insurers you have got to think longer term than any one year. The market had a terrific year this year, but that closely followed on from two disappointing years."
The insurer will continue to underwrite a diverse book of business through its five underwriting divisions - worldwide reinsurance, London Market reinsurance, contingent lines, property and casualty.
It is expected to increase activity specifically on specialty property and space accounts in the next 12 months.
Liberty Syndicates, the fourth largest managing agent in Lloyd's, suffered "unprecedented losses" during the 2005 hurricane season, with pre-tax losses of £407m sustained by Syndicate 4472's reinsurance and property accounts.
Earlier this year, the company lost two senior managers Sean Dalton and Andrew Elliott.
