Bermuda-based Flagstone Reinsurance Holdings Ltd. has agreed a deal to take full ownership of the South Africa-based unit previously known as Imperial Re.

Flagstone already owns 65 percent of the entity now called Flagstone Reinsurance Africa Limited (FRA) and will buy the remaining 35 percent stake from Imperial Holdings Ltd.

Flagstone said yesterday its decision follows the successful integration of FRA into the Flagstone Group and the substantial progress made in terms of business development.

The transaction is subject to necessary regulatory approvals.

Mark Byrne, chairman of Flagstone and FRA, said: "We are excited to have completed the integration work early, and with the substantial progress made in our African strategy.

"We would like to thank Imperial Holdings for their fine partnership, and look forward to a continuing business relationship with Imperial."

Flagstone had previously acquired a 65 percent majority shareholding of FRA in June 2008 at which time the company's name was changed and an AM Best international rating of A- was attained.