Quanta Capital Holdings, a Bermuda insurer in the process of closing down most of its business operations, last week said it had reached an agreement to help free it up from having to continue its support of a syndicate it owns in the Lloyd's of London market.

Under the agreement, Quanta and Chaucer Holding Plc. are creating a new managing agency, Pembroke Managing Agency Limited, to provide technical and administrative support and oversight to Quanta's Syndicate 4000, which is not part of the insurer's run-off plan for its insurance and reinsurance units. The deal is pending regulatory and shareholder approvals.

"Quanta believes Pembroke will enable Syndicate 4000 to maintain, and grow a long-term underwriting presence within Lloyd's without requiring direct technical or administrative support from Quanta," the company said in a statement.

The senior underwriting team at Syndicate 4000 is also a party to the Pembroke joint venture, Quanta said.