Lancashire Holdings Ltd. is set to gain promotion to the big league of the London Stock Exchange (LSE).

The Bermuda Stock Exchange (BSX) yesterday announced that the Bermuda-based insurer plans to apply to the UK Listing Authority.

Lancashire, which had a market capitalisation of £525 million on Friday, will be moving from the AIM (Alternative Investment Market) to the LSE.

Richard Brindle, chief executive of Lancashire, was quoted by the Financial Times as saying the move was "the next stage in our development" and open up the company to a broader range of investors and create more liquidity in the shares.

"Everything we are doing at a corporate level now... speaks volumes for our long-term intentions," he said.

The company was formed in the wake of Hurricanes Katrina, Rita and Wilma, came to market in a $1 billion IPO (initial public offering) three years ago, backed by a number of private equity groups and hedge funds.