Bermuda reinsurer PXRE has agreed to sell its defunct Lloyd?s operation to Chaucer Holdings Plc, a regulatory filing this week said.

PXRe Limited, a corporate member of the Lloyd?s of London market and the only member of Syndicate 1224, was put into run-off in 2000, meaning it has not since sold any new policies since. Under the sales agreement with Chaucer, the buyer is protected from losses on prior-year policies sold by PXRe through a special reinsurance contract that PXRe has bought from Omni Whittington Capital Management Limited.

PXRe has ultimate liability for any Lloyd?s obligations related to Syndicate 1224 up to ?12 million, according to the filing. The sale will see Syndicate 1224 merged into Chaucer?s Syndicate 1084. PXRE Group Ltd., the Bermuda holding company, said it expects to record a net realised loss on the sale in the fourth quarter of less than $5 million.