Talbot Underwriting will look to replicate its specialty business when it opens an Australian office on January 28.

Sydney-based Adam Matteson, who established Arch Insurance in Australia, has left Arch to lead the operation.

Talbot is a subsidiary of Bermuda holding company Validus Holdings, which also owns Validus Reinsurance, Western World Insurance and AlphaCat Managers.

Talbot already writes business here from its Lloyd’s syndicate, Mr Matteson told insuranceNEWS.com.au.

It operates from the Lloyd’s platform in Singapore but sees the need to transact with Australian clients closer to home.

Talbot manages Lloyd’s Syndicate 1183 and focuses on specialty risks such as marine, aviation, energy, terrorism, political risk, construction and financial institutions.

It also writes property and treaty reinsurance and has capacity of £625 million ($1.12 billion) for the current underwriting year.

Mr Matteson says there is a role for Lloyd’s capacity following mergers and acquisitions in the agency space here, and the move shows Lloyd’s commitment to the Australian market.