A member of Bermuda-based Imagine Group Holdings Ltd., a privately-held group owned largely by closely-held Canadian investment firm Brascan Corporation, has entered into an agreement in principle to acquire all of the outstanding shares of Abacus Syndicates Limited and Abacus Underwriting Agency Limited.

Abacus Syndicates Limited is a Lloyd's managing agency, established in 1999, specialising in professional and employers' general liability markets. Its 2005 capacity is $133 million.

Imagine Insurance Company Limited said in a statement that as part of the transaction it will provide support to Lloyd's Syndicates 2525 and 2526 for 2006, both of which are managed by Abacus. The insurer plans to focus its capacity for employers and professional liability written at Lloyd's with Abacus for 2006.

"With a growing platform of specialised syndicates, Imagine is providing opportunities for third-parties to partner with Imagine to provide capital support for underwriting at Lloyd's," the statement said.

The transaction is subject to final documentation and receipt of regulatory approvals.