A Bermuda insurer may buy an insurance affiliate from a company that sets up funds of hedge funds.

Bermuda Life Insurance Company Ltd., a unit of Argus Group Holdings Ltd., Hamilton, Bermuda, has agreed in principle to acquire Tremont International Insurance Ltd. from Tremont Group Holdings Inc., Rye, N.Y., according to Tremont Group.

The price and other terms of the deal were not available, but the parties hope to complete it by the end of the month, Tremont says.

Tremont, a company formed in 1984, set up the international insurance unit in 1996. The insurance unit sells variable annuities and variable life policies that invest a high percentage of holders’ assets in hedge funds.

Argus is an active player in the Bermuda property-casualty insurance, health insurance and pension markets and in the international life insurance market.