BF&M Ltd said today it had completed the $68 million purchase of Cayman-based insurer Island Heritage Holdings Ltd.In a regulatory filing published by the Bermuda Stock Exchange, BF&M said it had purchased 338,409 common shares of Island Heritage, amounting to a 100 percent holding.The Bermuda insurer and pension services provider announced two weeks ago that it had agreed to purchase the company, in which Flagstone Re had owned a 60 percent stake.Island Heritage was formed in 1996 following an insurance capacity crunch caused by large internal insurance carriers exiting the Caribbean in the wake of a number of hurricanes.The company is a profitable speciality property and casualty insurer headquartered in the Cayman Islands, and licensed in markets including the Cayman Islands, US Virgin Islands, Barbados and the Bahamas.