Allied World Assurance Company Holdings AG announced that its U.S. holding subsidiary has reached a definitive agreement to acquire Latin American Holdings Ltd., a program administrator that has underwritten trade credit and political risk coverages solely for Allied World since 2010.
The acquisition will allow Allied World to bring in-house LAU’s trade credit underwriting and market expertise. LAU wrote $28.5 million of gross premiums in 2013.
Under the terms of the transaction, Allied World will also acquire LAU’s underwriting teams in the United States and London. Allied World will continue to offer worldwide coverage for short and medium-term credit and political risk insureds targeting exporters, importers, financial institutions, contractors and investors worldwide. The transaction is subject to regulatory approval by the U.K. Financial Conduct Authority.
Frank D’Orazio, president, Bermuda and international insurance, commented: “The team at LAU has significant expertise underwriting the risks associated with trade credit and political risk. Bringing them in-house is part of our strategic commitment to building a stronger presence in this specialty segment of the market as we continue to build our global franchise. We expect very little change for our clients during this period of transition and look forward to working with the LAU team to further build-out this line of business.”
Source: Allied World Assurance Company Holdings
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