The owners of Sydney-based Assetinsure Holdings have entered into a binding agreement to sell the company to US-based Ironshore.

The sale will be made via its Australian subsidiary Ironshore Australia Holdings. It is subject to approval by the Australian Prudential Regulation Authority and is expected to be completed in the second quarter of this year.

Assetinsure CEO Gregor Pfitzer will continue in the role, and the company will retain its name and continue to operate independently. Staff and reporting lines within Assetinsure will also remain unchanged.

He will report to David Rogers, who has been appointed CEO of Ironshore Australia Holdings. Mr Rogers was formerly MD of Ironshore Australia Pty Ltd, a post that will now be filled by former executive director Katherine Simmonds.

Mr Pfitzer told insuranceNEWS.com.au this morning the sale to a strongly rated parent means “we can take the business to the next level. It’s a significant boost to our business because Ironshore carries a strong credit rating, which will make it a lot easier for us to deal across the broker market.”

Ironshore says acquiring Assetinsure gives the Ironshore Group access to a scalable and locally licensed corporate platform. As the two companies’ product range in Australia complement each other, the businesses will continue to operate as usual.

Group CEO Kevin Kelley said in a statement last night that the Assetinsure acquisition “allows Ironshore to broaden its product offerings within the region. We welcome the Assetinsure team and look forward to this strategic expansion opportunity for building our presence throughout the Australasian insurance market.”

Peter Wedgwood, the founder and Chairman of Assetinsure and the company’s largest single shareholder, says the new corporate platform “will allow the company to reach new horizons and develop even more specialty products”.

More information in our regular bulletin on Monday.