An investment vehicle owned by independent Lloyd’s broker Besso and London-based financial services venture capitalist BP Marsh has acquired a 39.47% interest in local underwriting agency Sterling Insurance for $6.16 million.

Sterling Company Secretary Chris Dardaneliotis – who is acting CEO of the company while Tony Parington is on long service leave – told insuranceNEWS.com.au the deal cements “a trusted relationship between both the entities and people involved”.

He says Sterling, which specialises in niche, hard-to-place and complex risks, has had a business relationship with Besso for almost 10 years. 

Besso was initially broking liability lines into Lloyd’s for Sterling before being appointed Lloyd’s broker for Sterling’s entire book of business last year.

BP Marsh, which owns 36.71% of Besso, is a well-known insurance investor.

The deal resulted from Sterling founder George Condell selling down his stake in the business, but Mr Dardaneliotis says the situation is “business as usual” at Sterling, with Mr Condell retaining a shareholding and having no plans to leave the business.

Under the terms of the deal, Besso and BP Marsh will each own 19.7% of Sterling, and BP Marsh director Daniel Topping will join the Sterling board.

According to a London stockmarket announcement by BP Marsh, Sterling posted a net profit after tax of $1.22 million in the year to December 31 2012.

BP Marsh Chairman Brian Marsh described the deal as an “interesting opportunity”.

“Australasia is a market which the group has flagged in the past as one in which it wished to increase its involvement,” he said.