Lloyd's of London insurer Brit Insurance is looking for a more tax-friendly domicile - and Bermuda may be on its list of potential new homes.

The company has appointed accountancy firm Ernst & Young to advise it on a possible move out of the UK.

Brit is one of a host of London-listed giants to have called the UK Government to lower corporate tax rates.

Apart from Bermuda, Switzerland, Ireland and the Cayman Islands are being touted in the UK press as jurisdictions that would offer more favourable tax rates.

Last December Brit was the lead investor in Norton Re II, a special purpose reinsurance vehicle established in Bermuda - possibly a factor in the Island's favour as Brit looks for a new base.

With initial equity capital of $118.2 million, Norton Re II uses Brit, which invested $20 million in the entity, to provide underwriting expertise.

Other Lloyd's insurers, including Hiscox, Omega and Catlin, have moved their head offices to Bermuda to enhance their tax position.

Amlin, the biggest UK-listed Lloyd's insurer by market capitalisation, which has a Bermuda unit, has also threatened to leave the UK.

Businesses have called on the Treasury to reduce and simplify corporation tax. The UK Treasury has put on hold plans to tax overseas profits.

According to the London-based Daily Telegraph, lawyers and accountants are warning that as many as 15 of Britain's biggest companies are hatching plans to quit the country. City sources said that unlike the first wave of companies that threatened publicly to quit, others are working on secret plans that they will present to the Treasury as a fait accompli.