Bermuda insurer Ironshore is set to make its long-anticipated move into the Lloyd's of London market after buying Pembroke Managing Agency Ltd., which manages Lloyd's Syndicate 4000.

The property and casualty insurer announced yesterday that it has signed a sale and purchase agreement with Chaucer Holdings plc. and the management of Pembroke for the £17 million ($34 million) cash acquisition of Pembroke Managing Agency.

The transaction is subject to approval from Lloyd's and the UK's Financial Services Authority (FSA).

Mark Wheeler serves as the active underwriter for the Syndicate, while Pembroke Managing Agency is led by managing director Mark Butterworth and underwriting director Mr. Wheeler.

The Syndicate underwrites a portfolio of specialist lines products including financial institutions, professional liability, marine and other select specialist lines.

Ironshore will take over the 2009 underwriting year of account onwards and Chaucer will retain the 2008 and prior underwriting years of account.

"We are very excited about the acquisition of Pembroke and Ironshore's entry into the Lloyd's marketplace," said Bob Deutsch, CEO of Ironshore.

"We will work closely with Lloyd's and the FSA to gain regulatory approval. The addition of Pembroke completes Ironshore's strategic goal to have three central underwriting platforms: Bermuda, US and Lloyd's.

"Ironshore is pleased to have found such a talented group with Mark Wheeler and his experienced team. Pembroke offers Ironshore a diverse spread of international financial institutions and professional liability risks, as well as an ideal Lloyd's platform poised for future growth focused on underwriting profits.

Mr. Wheeler said: "Pembroke is an excellent fit within Ironshore. Our business is complementary and our underwriting approach like minded.

"We are excited about this opportunity to join forces and further develop our existing business, whilst expanding into targeted lines of business where additional expertise is brought to bear. This natural evolution will enable us to enhance our offering to clients, and we believe provides the right platform to grow the business successfully."

Ironshore, which has been in business on the Island for around 18 months, made an approach to buy Lloyd's underwriter Heritage last year, but its offer was rebuffed.