Ace is pulling the plug on its life and healthcare syndicate 1171 after failing to find a buyer for the Lloyd's operation.

Syndicate 1171 has £10m capacity with a 70% bias in favour of life cover.

A spokeswoman from Ace said 1171 was a non-core activity the group picked up as part of its acquisition of Capital Re in December last year.

“Basically it was never Ace's intention to run a life operation. Unfortunately 1171 is governed by EU solvency requirements, which made it harder to find a buyer,” she said.

Ace has applied to Lloyd's to cease 1171 from December 31, 2000.

In the meantime Ace will to accept its share of Lloyd's business for the 2000 year of account, but will not accept new or renewal business, with immediate effect.

A “very small number” of redundancies are expected following the news, although Ace refused to confirm how many jobs would go.