Ironshore Australia staff will move into the Sydney offices of acquisition target Assetinsure once the deal is approved by the regulator, but the two companies will continue to operate separately.

Ironshore Australia Holdings CEO David Rogers told insuranceNEWS.com.au the acquisition, which was announced last week, will allow both companies to benefit from the strengths of the other.

Both companies are specialist players, and US-based Ironshore is particularly interested in the surety business that Assetinsure has built to a point where it is the largest carrier in the local market.

Assetinsure CEO Gregor Pfitzer says 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,” he told insuranceNEWS.com.au.

Mr Pfitzer will remain CEO of Assetinsure, answering to Mr Rogers. and the company will retain its name. Staff and reporting lines will also remain unchanged.

Mr Rogers set up Ironshore’s Australasian operation three years ago. His former position as MD of Ironshore Australia has been filled by former executive director Katherine Simmonds.

Ironshore says acquiring Assetinsure gives the group access to a scalable and locally licensed corporate platform. It says the two companies’ specialist product ranges in Australia complement each other.

The sale is subject to approval by the Australian Prudential Regulation Authority and is expected to be completed before the end of June.