CapSpecialty Inc. is set to continue operating as an indirect unit of Alleghany Corp. after negotiations with a trade bidder were deferred, Insurance Insider reported.

The talks were believed to be at an advanced stage but were called off with doubts lingering over whether CapSpecialty would be a good fit for the bidder. The identity of the bidder could not be confirmed, according to the report, and Alleghany did not respond to Insurance Insider's request for comment.

Goldman Sachs was serving as an adviser for CapSpecialty on a potential sale.