Crowe Syndicate Management (CSM) looks set for a management buy-out after parent company Stockton Re announced it was going to pull out of Lloyd's.

Directors of the Lloyd's managing agency are considering their options for their three remaining syndicates.

Managing director Richard Murphy said: “Over the past few weeks we have been talking to Stockton about its long-term commitment to the ownership of Crowe, in advance of the commencement of underwriting for the 2002 year of account.

“All 400 Crowe employees were also fully briefed on our plans on April 11.

“As a result of those discussions, Stockton has asked the CSM management team to put together some options for the future management and control of the business, including the potential for a management buy-out.”

CSM currently manages the retail operations based around syndicates 963 (motor), 982 (life) and (1204) professional indemnity and medical malpractice.

Three other syndicates are in run-off: 1121, 53 and 808.

The first two suffered losses and the last was transferred to Liberty.

Stockton has indicated it will provide capital backing to the active syndicates going forward in 2002.

A strategic group consisting of senior managers has been formed to carry this project forward. A decision need not be made for another six months.

Stockton Re owned the entire shareholding of CSM. It entered the Lloyd's Market in 1998, but has suffered heavy losses on its London Market syndicates.

Moody's Investors Service have said they are placing syndicate 963 under review for a possible downgrade.