New Zealand-based CBL Corporation plans to buy Securities and Financial Solutions (SFS) Europe, France’s largest specialist producer of construction sector insurance, for €94 million ($139 million).

SFS began working with CBL in 2005, and has become the company’s biggest client.

The acquisition includes SFS’s claims management operation, IMS Expert Europe.

CBL MD Peter Harris says buying the managing general agent will consolidate his company’s market position in Europe, particularly France, and help remove distribution concentration risk.

SFS is also complementary to CBL’s UK-based managing general agent, European Insurance Services.

“SFS and IMS would add significant specialist skills and resources that would enable CBL to grow both businesses,” Mr Harris said.

SFS has 37 wholly owned branches in France and a presence in 13 markets.

The deal is expected to be completed before the end of October, while €11.4 million ($16.8 million) of the purchase price will be paid over the next two years and will be adjusted for financial performance.

CBL, a specialist insurer and reinsurer focused on credit and financial risk, listed on the Australian and New Zealand sharemarkets last year.