Bermuda-based insurance company Island Capital and its UK unit, Island Capital (Europe), have been taken over by UK insurer and run-off investor Tawa in a $7.4 million (5.3 million Euros) deal.

Tawa announced the completion of its acquisition of a 94.3 percent stake in Island Capital and Island Capital (Europe) after receiving the necessary approvals.

As previously announced, the company had agreed to pay an additional sum of up to $15 million depending on the achievement of certain milestones.

The acquisition will provide Tawa with an access to the credit and political risk insurance market and would expand its overall business and geographical footprint.

Island Capital's president and CEO Paul Mooney will continue to manage the business.