London insurer Omega Underwriting Holdings Ltd. has received shareholder approval to set up a Bermuda reinsurer.

Omega said on Friday that its shareholders at an extraordinary general meeting approved a placing to raise ?90 million at 110 pence per share.

Based on the closing share price on Dec 1, this will capitalise Omega at approximately ?145 million, the insurer said.

Richard Tolliday, chief executive officer of Omega said: "By their impact on the insurance industry, Hurricanes Katrina, Rita and Wilma have created extraordinary opportunities. This successful capital raising enables us to take advantage of these opportunities by increasing our support for (existing) Syndicate 958 and launching Omega Specialty Insurance Co. Ltd in Bermuda in time for the first quarter renewal season."