Bermuda-based Hardy Underwriting has agreed to be bought by US underwriter, CNA Financial Corporation, for £143 million ($227 million).The offer, announced yesterday by Hardy, represents a 35 percent premium on the firm’s closing share price on Tuesday.Shares of Hardy closed at 205 pence on Tuesday and today were up 34.2 percent on the news in London Stock Exchange trading yesterday to close at 275 pence.Hardy is domiciled in Bermuda and has an underwriting unit based in offices on Par-la-Ville Road.According to CNA Financial’s website, the company is the seventh largest US commercial insurer and the 13th largest US property and casualty insurer.“The Board believes that CNA’s offer represents the most attractive outcome for our shareholders and will enhance Hardy’s business,” Hardy Chairman David Mann said in a statement.According a statement on the company’s website, under the terms of the acquisition, Hardy Shareholders will be entitled to receive 280 pence in cash for each common share, which values the entire issued and to be issued share capital of Hardy at approximately £143 million.“We are delighted to have reached this agreement,” said Thomas Motamed, chairman and chief executive of CNA. “Hardy is a specialist insurer and reinsurer with a respected brand and a long and distinguished history of disciplined underwriting in the Lloyd’s market.“While Hardy’s recent results reflect the extraordinary level of natural catastrophe losses across the global insurance industry, the Hardy franchise is built on a strong foundation and has a bright future. The proposed Hardy acquisition significantly expands CNA’s global capabilities and aligns well with our specialised underwriting focus.”Mr Motamed also stated that Barbara Merry, chief executive, and Patrick Gage, director of underwriting, will continue to lead their team.Hardy took a £42.1 million loss in 2011, citing an “unprecedented series of extreme natural catastrophe events” and had been looking for a potential suitor for some time.In 2010, Hardy’s board turned down a £171 million ($268 million) cash offer from Beazley, the fifth-biggest Lloyd’s insurer, which valued the company at about 1.4 times the company’s book value.The Hardy directors will unanimously recommend that Hardy shareholders vote to approve the CNA acquisition at the Special General Meeting, which is expected to be held in April 2012. Subject to obtaining the required regulatory consents without delay, the acquisition is expected to become effective by the end of June 2012.