Canopius Managing Agents has entered into an exclusive period of negotiations with a third party, which the company says may or may not result in: 1) a transfer of the right to managing the Syndicate; 2) a transfer of the renewal rights of the Syndicate's business with effect from January 1st 2007 and 3) the Syndicate ceasing to accept new or renewal business with effect from December 31st 2004; and 4) prospects of closure of the open years of account of the Syndicate by reinsurance to close.

The company claims that whilst various discussions have taken place during 2006 concerning a possible transfer of the right to manage the Syndicate and/or a transfer of the renewal rights, none of these discussions have proved successful. The Board of CMAL has said it is unlikely that a transaction will be completed this year, however it said “it will continue to explore all options.”

CMAL has advised Lloyd's that it is its intention that Syndicate 44 will cease to accept new or renewal business, on behalf of its members, with effect from December 31st 2006.