US-based commercial insurer CNA Financial has agreed to acquire Hardy Underwriting Bermuda, a specialist insurer and reinsurer underwriting in the Lloyd's market, for $227m.

As per the terms of the deal, CNA will pay GBP2.80 ($4.44) for each common share for Hardy shareholders.

With business operations in London, Bahrain, Guernsey and Singapore, Hardy underwrites marine and aviation, property and specialty business, together with a property reinsurance account.

Under the deal, Hardy CEO Barbara Merry and underwriting director Patrick Gage will continue to lead the new business.

CNA Financial chairman and CEO Thomas Motamed said that Hardy is a specialist insurer and reinsurer with a respected brand and a long and distinguished history of disciplined underwriting in the Lloyd’s market.

"While Hardy’s recent results reflect the extraordinary level of natural catastrophe losses across the global insurance industry, the Hardy franchise is built on a strong foundation and has a bright future," Motamed said.

The transaction, which is subject to regulatory approvals, is expected to close during the second quarter of this year.