Bermuda-based specialty insurer Torus Insurance Holdings Ltd. will boost its capital by around $79 million following its amalgamation with another Island-based reinsurer Sideris Re Holdings.

Torus's parent company First Reserve Corporation owns both companies and agreed to merge Sideris Re into Torus's business.

Sideris Re is an energy insurance joint venture with a leading onshore and offshore energy risks direct insurance underwriter, C.V. Starr & Co.

As well as reinsuring US-domiciled clients, Sideris Re provides the capital supporting Lloyd's syndicate 2243, which services non-US clients.

Clive Tobin, Torus' chief executive officer, said: "Sideris' business complements our own existing energy portfolio, increasing our underwriting flexibility and underlining a growing commitment to serving clients in this sector."

Torus was established in 2008 with $720 million of capital backing from First Reserve Corporation.

Mark McComiskey, managing director of First Reserve Corporation, said: "The amalgamation of our insurance operations, under the management of Torus, is a logical step for all parties."