Ernst & Young has been appointed to advise Brit Insurance on a more competitive tax regime that could see the underwriter quit the UK market.

According to a report by the Financial Times, the company has been considering its options for several months and is seeking advice from the Big Four firm in assessing alternative jurisdictions.

Such a move could offer a reduced rate of corporation tax.

Despite failing to identify potential locations, Switzerland, Ireland, the Cayman Islands and Bermuda are among those that offer preferable tax rates to the UK.

The news follows reports earlier this year the FTSE 250 company called on the government to overhaul the corporate tax system.