Canopius has become the latest takeover target for Bermudan insurers looking to gain a foothold in the Lloyd’s market.

The insurer is understood to have received several unsolicited approaches in the region of £250m, with Ariel Re being touted as a potential bidder.

The Bermuda reinsurer, led by industry veteran Don Kramer, declined to comment on suggestions it was looking to buy Canopius from majority stakeholder Englefield Capital.

However, sources close to the company have admitted that Ariel is looking for potential opportunities in the London market.

In February Ariel was tipped as the frontrunner in the race to buy Lloyd’s insurer Talbot Underwriting. It eventually lost out to fellow Bermudan reinsurer Validus Re.

The sale of Talbot marked the first significant acquisition of a Lloyd’s syndicate by a Bermudan reinsurer, who are thought to be keen on diversifying into the London market following record profits in 2006.

Meanwhile, suggestions have been made that Canopius may reject any takeover bid in favour of making its own acquisitions.

Canopius declined to comment.

The company is understood to have appointed corporate financiers Fox-Pitt Kelton and Benfield Advisory to carry out a strategic review of the business.

Canopius declined to comment.