Novae may offer to buy Omega, merging two Lloyd's insurers

LONDON—Novae Group P.L.C. said Tuesday that it is conducting due diligence on a possible merger with Omega Insurance Holdings Ltd.

London-based Novae, which operates syndicate 2007 at Lloyd's of London, said in a statement that there is no guarantee that it would make an offer for Hamilton, Bermuda-based Omega.

Omega said in March that it had received several offers since January's an unsolicited offer from Guernsey-based Canopius Group Ltd.

Omega operates syndicate 958 at Lloyd's as well as insurance units in the United Kingdom, United States and Bermuda.