Bermuda-based reinsurer Alea Group and Fortress Investment Group have reached an agreement for Fin Acquisition, a fund manager owned by Fortress, to acquire the reinsurance firm for GBP162 million ($319 million), reported Post Online.

As part of the deal, the New York-based private equity firm will pay 93 pence in cash per share, Bloomberg reported, equating to a 15% premium over its average price for the last six months.

Cited in Bloomberg, Alea chairman John Reeve stated that the sale to Fortress is expected to bring greater stability to the group. He also added that the agreed purchase price was an attractive offer for the shareholders.

According to Bloomberg, Alea put itself up for sale after suffering detrimental losses from a storm in 2005.

The acquisition news has also coincided with the unveiling of Alea’s 2006 annual results, which saw the group achieve net insurance premium revenue of $215.9 million, while its investment income increased to $94.8 million from $89.1 million, revealed Post Online.