Flagstone Reinsurance Holdings Ltd. has become the latest Bermuda company to buy into the London insurance market.

The reinsurer announced on Friday that it had entered into an agreement to buy Marlborough Underwriting Agency Ltd. from the Berkshire Hathaway Group.

Marlborough is the managing agency for Lloyd's Syndicate 1861, which underwrites a specialist portfolio of short tail insurance and reinsurance.

Flagstone chairman Mark Byrne said: "Marlborough and its team are an excellent fit and an important strategic addition to Flagstone. We are pleased with the existing business plan and are planning only additive changes.

"Having a modern Lloyd's platform, with access to both London business and that sourced globally from our network of 13 offices, will allow Flagstone to complete our mission of being a multi-line reinsurer and an insurer in selected markets."

Mr. Byrne added that Marlborough's senior management team, led by managing director Tom Bolt, had all decided to stay with the company when it comes under new ownership.

Mr. Bolt said: "Having Flagstone as a business partner for the Agency and our employees offers excellent prospects for taking the business forward. We are pleased to have the opportunity to become part of a group that shares the approach and values Marlborough has operated under for the past seven years."

The acquisition does not include any liability for business written in 2008 or prior. Flagstone is in the process of licensing its own corporate capital vehicle which will be the capital provider for Syndicate 1861 for 2009 and subsequent business. The transaction is subject to Lloyd's and UK Financial Services Authority approval.

Several Bermuda-based companies have already bought into Lloyd's, looking to take advantage of the London market's global reach. Earlier this year, Ironshore bought Pembroke Managing Agency and the Argo Group acquired Heritage Underwriting. Last year, Flagstone's fellow class of 2005 reinsurer Validus Re purchased Talbot Underwriting.