Bermuda-based Omega Insurance Holdings has agreed to sell a quarter of the firm to Haverford (Bermuda), a Class 3A insurance and reinsurance company.
Haverford will pay 83 pence per Omega Share, which would represent a premium of 26% to the closing price of 66 pence per Omega Share.
Upon completion of the transaction, Mark Byrne, chairman of Haverford, is to be appointed a director and executive chairman of Omega.
Omega’s current chairman John Coldman will step down as chairman on completion of the transaction but remain on the Omega board as a non-executive director.
Jack Byrne, long time insurance industry executive, is expected to join the Omega board as a non-executive director from completion of the transaction.
Mark Byrne said they are delighted to be making this offer. While the company has experienced a challenging couple of years, the future for its core business looks bright.
"I am looking forward to the opportunities this executive role will offer and to working with the strong team already in place to accomplish the new strategy for Omega," he added.