A number of employees at Wellington Underwriting are facing an uncertain future after the company's proposed sale to fellow Lloyd's insurer, Catlin.

It is understood that five members of the managing agent's underwriting team have not been found a position in the new enhanced company.

Insurance Times has learned that four assistant underwriters have been made redundant.

The most senior casualty is Peter McIntosh, an underwriter in Wellington's marine - hull, cargo and specie division.

A source close to Wellington, said: "It is a pretty modest number all things considered.

"But, [the companies] have not done anything with the back office yet as it is a complicated process getting all of the business across. They will look at that, as and when."

Wellington's Ipswich-based finance team is also understood to be under pressure after staff received letters warning them of potential job losses.

Catlin will become the largest underwriting operation at Lloyd's after agreeing takeover terms with Wellington.

The managing agent has agreed to pay 121p for each Wellington share in a deal that could be worth as much as £706m.

Both Wellington and Catlin declined to comment on the market speculation.