Bermuda-based Omega Insurance Holdings Ltd is being eyed for takeover again this time by Lloyd’s of London insurer Novae.“In accordance with the group’s publicly stated strategy, Novae routinely reviews possible transactions and confirms that it is currently undertaking due diligence in evaluating the merits of proposing a possible merger with Omega,” Novae said in a statement yesterday.Novae added there was no certainty it would make an offer for Omega. If the deal went through it would create a company with a combined market capitalisation of some $692 million.In January, Omega received a bid approach from privately owned rival Canopius and it then received further bid approaches from other parties, whom it declined to identify.Omega’s shares slightly to 74 pence in afternoon trading on the London Stock Exchange to give Omega a market capitalisation of around £180 million. Novae shares were up four pence at 373 pence, giving the insurer a market value of around £240 million.In March, Omega announced a wider-than-expected full-year 2010 loss of $42.8 million, as a string of catastrophe loss events took their toll.The company wrote gross premiums of $356.1 million last year. Omega went through a year of upheaval last year after it ousted directors including chairman Walter Fiederowicz in May at the request of its biggest shareholder, Invesco Asset Management Ltd.Omega is domiciled in Bermuda and has an operating unit on the Island. It also writes business through Syndicate 958 at Lloyd’s as well as other insurance units in the UK and the US.Numis Securities analyst Nick Johnson said there were reasons why the considered merger would make sense. “Novae’s got a strong operating platform which could support Omega, and Omega’s Bermuda business could provide a natural growth channel for Novae’s business which is more Europe-based,” he said.Hardy Underwriting Bermuda Ltd, another Island-based, London-traded company has also been the target of takeover moves, having turned down two approaches from rival Beazley last year.