Royal & Sun Alliance (RSA) has lost patience with the UK mid-market car insurance business, announcing plans to exit the sector early next year.

It will cease writing new motor business immediately and will not renew policies after November 1.

RSA, the second-largest general insurer in the UK, will also sell specialty motor trade broker Fyfe Group to risk and insurance consultant Aston Scott, just four years after it bought the business.

The move follows “years of extremely tough market conditions and poor results within our motor business”, according to RSA UK Commercial MD Jon Hancock.

“We are working with affected brokers and customers to help them find the right solutions for the business they are looking to place, and ensure a smooth policy transition.”

The fiercely competitive British motor insurance market has claimed many victims.

In July last year HSBC Insurance Services sold its run-off motor underwriting business, HSBC Insurance UK, to Syndicate Holding Corp for £68.5 million ($103 million), completing its exit from underwriting motor insurance in the country.

The future of Australian insurer IAG’s UK operations remains in doubt after losses of $13 million and write downs of $297 million led to a 17.2% fall in net profit to $207 million for the 2012 financial year. Most analysts predict IAG will sell its UK assets to focus on more profitable markets in Asia.

Several reports last year forecast returns to profitability, but in May Deloitte reported that while the UK motor insurance market’s net combined ratio improved last year, profits had not eventuated for most insurers.