Canopius swoops for KGM

Canopius has sealed a deal for motor insurer KGM.

It has acquired KGM Underwriting Agencies, which manages Syndicate 260.

The deal also includes approximately 60% of Syndicate 260's capacity.

Syndicate 260, which will write approximately £50m of premiums for the 2010 year of account, will continue to trade under the KGM name.

It will remain as a separate syndicate, supported by Canopius and Names, operating alongside Canopius's existing Syndicate 4444.

Michael Watson, chairman of Canopius, said KGM "is an excellent fit with our existing businesses and our development plans.”

“KGM has a long established franchise and a core book of specialist business.

"Its motor business complements and diversifies our existing underwriting portfolio and builds our specialist capabilities.

“Canopius already has a significant involvement in UK retail insurance through its substantial UK household business and through majority ownership of Arista, which provides property, liability and motor insurance for the UK SME sector.

Colin Hart, chief executive of KGM, said: "The KGM team is delighted to be joining forces with Canopius.

"As part of a larger underwriting-focused group we will be better placed to ensure the continuity and quality of service our business partners value.

"KGM and Canopius will provide each other with development opportunities, which is excellent news for our respective business partners. This is the start of a very exciting new chapter in the illustrious history of Syndicate 260. "