THE Argus Group has reached an agreement in principle to acquire Tremont International Insurance Limited (TIIL), a leading offshore insurance provider.

The agreement was made through the Bermuda Life Insurance Company Limited, a subsidiary of the Argus Group.

A Bermuda-based insurer, TIIL offers variable annuities and life insurance products with a focus on hedge fund investment strategies. The company was formed in 1996.

"We are very pleased to continue to grow our international life insurance business, a business that is not restricted by the limited size of Bermuda. With this acquisition, we believe that we are uniquely positioned to provide the highest level of service that this niche market expects," said Gerald Simons, president and chief executive officer of the Argus Group.

Pending regulatory approvals, the parties are expected to conclude an agreement for the sale of TIIL's outstanding shares on or about November 30.

Added James Selvaggi, president of TIIL: "The sale of TIIL is an opportunity for the Tremont Group to realise a return on its investment in the offshore insurance business.

"Furthermore, it advances the group's strategy to strengthen its global leadership role as a discretionary investment manager of hedge fund of funds products and services among a broad set of institutions, including investment organisations, insurance companies, pensions and endowments."

On completion of the transaction, all policy issuance and administration functions conducted through TIIL will be transferred to Bermuda Life.

"Tremont will continue to provide investment management services to the existing TIIL policy portfolio," a spokesperson said.

"In addition, Tremont Capital Management will maintain its commitment as a leader in the investment management of insurance-dedicated hedge fund of funds portfolios."