Lloyd's syndicate 2241, backed by service provider Dex Services, will look to write business outside of Lloyd's.
The syndicate's managing agents are Thomas Miller Managing Agency (TMMA) and its lead underwriter is Martin Bonds. It specialises in marine hull and for 2003 held £17m of capacity.
A Lloyd's statement said: "Under the new Franchise arrangements, Lloyd's has set out certain underwriting guidelines which are based on sound business practices.
"We have been involved in discussions with Syndicate 2241 to resolve a number of concerns, including the extent to which their 2004 Business Plan would comply with these guidelines.
"We set out clearly the modifications that were needed. Dex have informed us that, rather than make the suitable changes, they intend to move their business outside of Lloyd's. Lloyd's is clear that going forward businesses operating within Lloyd's should comply with the Franchise guidelines unless it can be shown to be inappropriate."
