Lloyd’s insurer in talks over buyout deal

Chaucer, which last month revealed it had received takeover approaches from suitors including buyout tycoon Guy Hands, said talks are continuing and it is not yet clear whether a firm bid will emerge.

Chaucer chairman Martin Gilbert said: “It will take time to ascertain whether an offer for the business may be forthcoming.

“We continue to hold discussions with interested parties with a view to maximising value for shareholders.”

Analysts said Chaucer’s weaker 2010 profit could hinder the company’s efforts to negotiate a high takeover price.

“Lloyd’s of London insurers are seen as ripe for consolidation because a steady fall in global insurance and reinsurance prices has weighed on their shares.”