LONDON (Bloomberg) — Omega Insurance Holdings Ltd., a Lloyd's of London insurer, made a stock or cash offer to buy underwriting capacity at the London market for 2010 and subsequent years.

Omega will pay 0.3 common shares for every £1 ($1.60) of capacity on Syndicate 958, or a cash alternative of 40 pence for every £1 of capacity, the Bermuda-based company said yesterday in a statement. The company expects to buy between £50 million and £125 million of additional capacity, it said.

The stock offer is based on Omega's share price of 135.5 pence as of May 29.