Chaucer Holdings is raising £20.2m through placing an open offer to its shareholders.

The Lloyd's syndicate, which last year lost £3.8m through investments and underwriting provisions, has now contacted its shareholders, saying it has raised £20.2m for shares.

For every four shares each person currently owns, they will be able to buy another three. If they don't, Chaucer will sell them on to a third party.

The funds will be used mainly to support underwriting on Chaucer syndicates.

Chaucer has also entered into an agreement with BRIT Insurance Holdings, another Lloyd's syndicate. It has offered to buy BRIT's entire interest in the associated company, Chaucer Dedicated, for £3.4m, providing shareholders agree.

Ewen Gilmour, managing director of Chaucer, said: “We are delighted with the support given to us by our major shareholders and the investment community and the confidence in our future that this shows.

“The additional funds should prove timely as we experience rate rises across many areas of our business.”