Cover-More has completed its $US105 million ($140.2 million) acquisition of Travelex Insurance Services, the third-largest retail travel cover specialist in the US.

The purchase, announced in September, is funded through a fully underwritten share offer to raise $73.3 million, with bank debt accounting for the remainder.

Group CEO Mike Emmett told the annual general meeting this month that Travelex is an “excellent strategic fit” for Cover-More’s ambition to grow in North America.

Cover-More says the North American market is key to its future following a 27.5% decline in net profit to $18.7 million last financial year.

The Sydney-based travel insurer entered the US market – the world’s largest – in May under a partnership with Aon Affinity Travel Practice and Flight Centre USA.