Assetinsure, the largest surety bond insurer in Australia, has been acquired by New Zealand-based specialty insurance and reinsurance group CBL Corporation.

CBL already has Australian Prudential Regulation Authority (APRA) approval to buy 100% of Assetinsure shares, and the transaction is due to settle early next month.

Assetinsure CEO Gregor Pfitzer told insuranceNEWS.com.au different options were evaluated but he is delighted with the outcome.

“The fundamental change is that we become part of a more international group,” he said. “There is more opportunity to apply our knowledge outside Australia, and we will become a more outward-looking entity.”

CBL MD Peter Harris says the acquisition is an important step in his group’s strategy to increase Australian business.

“We can now distribute products in Australia through an APRA-regulated entity, and we can also introduce certain Assetinsure products and relationships into our own existing international markets,” he said.

“Currently our business is strongly weighted to Europe, accounting for more than 70% of business written… and we expect the purchase of Assetinsure to go some way to addressing this.”

Assetinsure also handles credit enhancement, aviation and specialised property, strata and motor insurance from its offices in Sydney, Brisbane and Perth.

It will continue to operate under its own brand and there will be no staffing changes.

CBL plans to list on the Australian Securities Exchange later this year, which Mr Pfitzer says will bring “significant advantages”.