Ensurance has acquired TK Specialty Risks, a professional and financial lines-focused underwriting agency with a network of more than 70 brokers across the country.

The listed agency says in an investor update today the “transformational acquisition” will provide it with the opportunity to scale existing operations and expand into both professional and financial lines markets.

It sees opportunities to also offer emerging risk solutions such as cyber liability through the investment.

“Ensurance has focused on repositioning the business over the last 2 ½ years and is now seeking to build from this platform,” Chairman Tony Leibowitz said.

“[TK Speciality Risks] and in particular its CEO provide the Company with an excellent opportunity to expand and grow in the Australian market through its complementary lines of business activity.”

TK Specialty Risks CEO Tom Kent says with Ensurance taking full ownership of the agency, the business now has an opportunity to build up its national footprint.

Established in November 2015, TK Specialty Risks underwrites business through its network of brokers and currently has premiums under management in excess of $10 million.

It offers premium standard products in well-established lines of insurance, such as management liability and professional indemnity. It also has a strong emphasis on providing solutions for emerging risk classes including cyber liability.

Additionally, it offers claims handling expertise, principally in partnership with global insurer Axa.

Ensurance says it has executed an agreement to acquire 100% of the issued share capital of the agency. The agreement involves issuing Ensurance shares for an equivalent value of $2.5 million.

The acquisition is expected to complete by the end of July pending shareholder approval.