the majority interest in the local insurance and shipping agency company, Harnett & Richardson Ltd. (H&R), together with the sale of prime Front Street real estate.

The parties were said to have initially reached agreement as far back as December, although there were significant technical issues that first had to be resolved.

Business tycoon, Stanley Evans, said yesterday that Michael Freisenbruch and Meyer Agencies Ltd. have made a substantial investment in his H&R through their FM Investments Holding Ltd., and have also purchased his 200-year-old Harnett & Richardson building through their Darrow Ltd.

The three-storey building is now scheduled for renovations and improvements that include the installation of a new elevator, with up to four months work scheduled to begin in late autumn of this year.

Mr. Freisenbruch and Meyer already own Freisenbruch-Meyer Insurance Services Ltd. (FMIS), of which Mr. Freisenbruch is president.

He said yesterday, "Our role is to inject capital into H&R and then manage the firm, creating opportunities for growth.'' It already brings a substantial portion of the domestic insurance business under one management. Insurance of local residential and commercial properties is likely to emerge as a core business, together with a large marine account and a significant amount of motor business.

Although the two insurance firms will be run separately for now, they will be able to take advantage of certain business synergies, particularly administratively. The combined complement of some 17 staff will be retained and may increase.

Observers estimate the total deal could have involved in excess of $5 million, although no figures were released by the parties involved.

It brings Mr. Evans back together with the man he hired 23 years ago as a graduate trainee to learn the insurance business at H&R. Mr. Freisenbruch left the company in 1980 to set up FMIS as the new operating company for the Royal Insurance Group Agency. Mr. Evans last summer placed substantial holdings on the market ( The Royal Gazette , July 3). They included the building opposite Number Six Dock, the insurer, Butterfield Travel, Globe Press Printing Company, Globe's building on Euclid Avenue, together with Hamilton Valcleners Ltd. and Paget Dry Cleaners.

The assets of the latter two businesses were sold in February to Steve Thomson, William Thomson and Stephen Dunkley. The dry cleaners are at the centre of the industrial row that led this week to a strike over union rights.

But the latest sale of the city building and a significant stake in the insurer was itself, not without tense moments. For one thing, they were highly desirable portions of Mr. Evans' empire.

Barry Capuano, president of CapCar Enterprises Ltd., which brokered the sale of the building and the investment transaction, said that "many interested parties'' had expressed interest.

He said, "We had a lot of people who took an aggressive stance toward taking this business on. Michael had his work cut out for him. It was not that straight forward and probably one of CapCar's most challenging deals.'' But he noted, "The combination of timing and Mr. Evans' desire to see his previous pupil take over for him, resulted in the acceptance of Mr.

Freisenbruch's investment offer.'' H&R was established 80 years ago and offers a wide range of general insurance products domestically. It represents Guardian Royal Exchange Plc (GRE) and places what the parties jointly called "a substantial amount'' of business in the Lloyd's market.

After extensive meetings in London, GRE's director of international agencies, John Webber, has indicated that GRE is happy to continue to provide insurance and associated support to H&R, its staff and its many policyholders.

Mr. Evans is also expected to recommend to Lloyd's of London that the Lloyd's agency be retained by the new management structure.

H&R will also continue to represent American Life Insurance Co. in the provision of health insurance and pension planning services. They will also continue to provide individual life insurance policies of London Life of Canada. FMIS also represent London Life here.

H&R's international business portfolio is conducted through associated company, HSBC Gibbs Harnett & Richardson Ltd., a joint venture between H&R and the international broking firm of HSBC Gibbs Ltd., the 17th largest insurance broker in the world.

Majority interest of H&R sold The two companies have had a relationship since the 1930s when major financial institutions here began placing their crime insurances in the London market.

Keith Jones, managing director of GHC Financial Institutions Insurance Services Ltd., representing HSBC Gibbs Ltd. said that relationship will continue.

Insurance manager, Roy Fellowes, will continue to head the H&R team, concentrating on international operations and key business segments of the company's local business.

H&R was two years ago appointed as the Bermuda affiliate to Assurex International, a North American association of insurance professionals with restricted membership.