First American Financial Corporation of Kansas City, Missouri.

Altus Holdings Ltd. was launched last year to provide underwriting management services and compete in the rent-a-captive segment of the alternative insurance market through its Bermuda subsidiaries.

It's latest acquisition, First American Financial Corporation, owns First American Insurance Company, which is licensed in 48 states of the US and was rated A-minus by Best's.

The deal finalised last week would see First American's policyholders' surplus increased to $30 million.

Altus Holdings Ltd. shareholders include The Trident Partnership L.P., Risk Capital Re and Marsh & McLennan Risk Capital Holdings, Inc.

When it was set up last year Altus subsidiary Alternative Re Ltd., was reportedly also backed by Bermuda-based Exel Ltd. -- now known as XL Capital.

Those four companies handed over $35 million in capitalisation to Altus Holdings Ltd.

Altus set up underwriting management services company Altrisc Services, a US subsidiary based in Stamford, Connecticut, and rent-a-captive company Alternative Re Holdings, based in Bermuda.

Alternative Re Holdings in turn has subsidiaries Alternative Re, the operating reinsurance company, and Alternative Underwriting Services.

Altus president David May said the acquisition of First American Financial Corporation, which was finalised last week, was a step toward the goal of "developing quality programmes for both personal and commercial lines.'' "Working with Altrisc Services, Inc., an affiliate, First American brings a highly experienced and responsive team and does not have the programme conflicts common to many of the established companies,'' he explained.

"Also, we are looking to grow First American's traditional collateral protection lines.'' The company stressed in a statement that their Missouri-based acquisition, First American Financial Corporation, was not related to First American Financial Corporation of Santa Ana, California.