Bermuda-based American Overseas Group (AOG) has acquired Orpheus, which is a specialty writer of non-standard auto (NSA) insurance business in the US.

AOG, which was formerly known as Ram Re, is in the process of running off its long-tail financial guaranty business, while building up a property and casualty business.

The acquisition of Orpheus “completes the transformation of AOG into a property and casualty insurance holding company”, according to a statement issued by AOG.

Last week the Bermuda Stock Exchange-listed company announced it had completed a reverse stock split converting shares with a par value of $1 onto $100 shares on a 100 for one basis.

Following the transaction, AOG’s outstanding common shares increased from 27,492 shares to 42,914 shares, net of treasury stock. The company also issued some $43.9 million of senior notes in connection with the transaction.

Orpheus, which has 41 employees, had owned 48 percent of AOG’s shares before the transaction.

AOG stated: “As a result of the acquisition, the outstanding shares of the company are now widely distributed. No single shareholder currently owns more than 10 percent of the company’s outstanding shares.”

Though AOG is incorporated in Bermuda, it is a tax resident of the UK.

Its operating subsidiary, American Overseas Reinsurance Company Ltd, is a property/casualty reinsurance company that currently writes short tail non-catastrophe property/casualty reinsurance and historically wrote financial guaranty reinsurance for US and international public finance and structured finance transactions.