Bermuda-based Stockton Reinsurance Ltd. announced the completion of negotiations and due diligence in its move to buy one of the biggest remaining independent managing agencies at Lloyd's, Crowe Insurance Group.

But despite the acquisition Crowe will continue to operate under its own name and current management team, as was announced at the signing of heads of agreement in December last year.

Stockton Re president and CEO Dan Malloy said yesterday the buy-out process had involved almost three months of work with Crowe and their advisors.

"During this period we have gained great respect for the calibre of both senior management and the entire Crowe team and are excited to be working with them in the future,'' he said. But he was adamant that the signing would have no negative impact.

"We reiterate that, with the acquisition we will not compete with our existing brokered client base.'' The chairman of Stockton Re's parent company Stockton Holdings Limited, Robert Easton, said the company would now be able to work on developing its strategic interests and becoming a partner in the Lloyd's market.

And Crowe Insurance Group chairman Michael Crowe described the signing of the deal yesterday as the "beginning of a new era for Crowe''.

"Stockton Re's commitment to investing whilst maintaining a respect for our management approach and for the way we do business will build on our successes to date,'' he said.

"The Crowe team looks forward to working closely with Stockton Re to take advantage of the many opportunities arising in the Lloyd's market.'' Crowe manages six syndicates with total premium income capacity of over 230 million for 1999 and operates from nine offices in the UK as well as offices in Canada, Hong Kong, Italy and the Philippines.

The syndicates specialise in aviation insurance and reinsurance, marine reinsurance, UK liability and term life products as well as underwriting private and commercial motor risks.

Independent reinsurer Stockton Re provides a variety of risk transfer coverages with a focus on customised finite reinsurance and in September 1998 had assets worth $1.8 billion and shareholders' equity of over $650 million.

Last year the privately held company -- which has Bermuda headquarters and a London representative office -- received an initial rating of A- (Excellent) from A.M. Best.