The proposed acquisition of AXA Corporate Solutions Excess and Surplus Lines Insurance Company will see Wellington Underwriting expand into US speciality business, the company announced.
Wellington said substantial agreement had been reached with the company on the terms of acquisition, and it said it expected a conditional purchase agreement would be signed very shortly.
Wellington said the deal was expected to cost in the region of $40m, coming from the company’s own resources.
The company will be renamed Wellington Speciality Insurance Company, and will write a book of business focused on small direct, general agency produced, commercial casualty and property business throughout the US.
Dick Nenaber will head up Wellington Speciality and will report directly to Stan Kott, who leads Wellington’s business operations in the US, said the company.
Premium volume from the new operation is expected to reach $40m by the end of 2005, said the company, as the result of planned expansion.
Wellington’s existing US-based operation, Wellington Underwriting will continue to operate alongside Wellington Speciality. It is not anticipated that the two companies will have any formal trading relationships with one another, said the company.
Wellington Underwriting chief executive Julian Avery, said: “Wellington Specialty is demonstration of another step forward in our strategy to develop Wellington into a sustainable, independent, specialist insurance organisation.
“Wellington Specialty will complement the business currently written by the Group and will provide business opportunities not available to Wellington’s operations at Lloyd’s.
