CGU Insurance has increased its stake in specialist underwriting agency Accident & Health International (AHI) from 50% to 100% for an undisclosed sum.

AHI’s former deputy CEO Peter Banks has been appointed to replace founder David Epper as CEO.

Mr Banks joined AHI in 1999 as an underwriter, and was subsequently southern region manager and national underwriting manager.

AHI provides general and personal accident, medical and travel insurance in Australia and internationally. It has gross written premium of $60 million and has offices in Sydney, Melbourne, Brisbane and Perth.

CGU acquired a 50% stake in the underwriting agency from Mr Epper in 2010. The deal included an option to acquire the remainder.

insuranceNEWS.com.au understands the final acquisition price is subject to a three-year earnout period. Mr Epper, who set up AHI in 1998, will remain on the AHI board.

Last month CGU acquired AHI-associated risk and emergency management group Dynamiq.