Cathedral, founded in 1997 and 63 per cent owned by private equity group Alchemy, is being put on the block with an asking price of between £250m and £300m.
Alchemy bought the firm for 2007 in a deal that valued Cathedral at around £160m.
The sale, first reported by Sky News, would make Cathedral the latest Lloyd’s managing agent to change hands in recent years, following Apollo and CVC’s takeover of Brit Insurance and Hardy’s sale to CNA Financial.
Cathedral reported a profit of £11.6m last year, paying out 83 per cent of its premiums in claims. The firm did not comment yesterday.