HSBC Insurance Solutions (Bermuda) Limited has entered into an agreement with BF&M Management Limited to purchase its captive management operations, it said in a statement.

A price for the acquisition, which was announced yesterday, was not disclosed. The transaction is expected to close at the end of August.

Under the terms of the agreement, BF&M will transfer its client management contracts to HSBC.

In total, HSBC will acquire 24 new clients from the BF&M acquisition. Roy Fellowes, managing director of HSBC's insurance operations in Bermuda and the deputy chief executive of HSBC Insurance Management, said its captive management numbers would top 60 clients, after the acquisition.

All staff in the BF&M unit have agreed to continue working under HSBC and will relocate to HSBC's Hamilton offices, the statement said.

John Wight, president and chief executive of BF&M Limited, said the company decided to sell its captive management business because it was "not part of the strategic plan for growth of the BF&M Insurance Group".

The news comes after HSBC announced it would move its own captive to Bermuda, from its previous domicile in Guernsey.

HSBC Insurance Solutions (Bermuda) Limited is now the manager of the HSBC Group Captive.

As captives do, the HSBC Group Captive insures risks from its parent company. It has contributed 280 million of economic profit to the group in its 18-year history, the bank said at the time of announcing the move to Bermuda.