Bermuda-based insurance and investment firm Old Mutual has been bought by Beechwood Bermuda.

Old Mutual, which has more than $1 billion in assets, closed for new business in 2009.

Now Beechwood, a major provider of international investment plans that has more than $2 billion in assets, has completed the buyout of the firm for an undisclosed price.

Beechwood chief executive officer Mark Feuer said: “This transaction offers a unique opportunity to strengthen our position as a global leader and demonstrates our dedication to providing innovative financial solutions for international investors.

“Our scale and resources will allow us to continue to meet and further develop client demand for our products for years to come.”

Beechwood has pledged continuation of service support for Old Mutual products over the next three years, backed up with support from Beechwood’s wealth management business.

As part of the agreement, Old Mutual will reinsure certain policy guarantees until they mature in 2017 and 2018.

Beechwood said it will contact Old Mutual’s distribution partners to discuss the transition and introduce Beechwood’s Accumulator Plus and Escalator Plus investment plans, which it said offer attractive rates and unique investment features such as principal protection guarantees.

David Lessing, executive vice president of products and services at Beechwood, commented: “The growing client demand for the Beechwood products reinforces our decision to make a significant commitment to this business in support of our distribution partners and their financial advisers.”

Beechwood Bermuda is a long-term insurer based in Hamilton. The company also owns Caymans-based Beechwood Re.

The companies were formed to service demand from non-US high-net-worth investors seeking innovative, guaranteed investment products, and US and international insurers in need of attractive capacity in the life insurance and annuity reinsurance market.