Arthur J Gallagher-owned Pen Underwriting has acquired Berkley Insurance Australia’s motor and fleet motor business.

The deal will see Berkley transition out of the market and Pen invite renewal on the Berkley book.

“Pen has a desire to be one of the dominant players in Australia and has the capital ability to do so through a willing parent company,” Pen CEO Gary Marshall told insuranceNEWS.com.au.

“Pen has been participating in the motor insurance market for more than 20 years.

“Because the Berkley book was very similar in content to the Pen book, it was an ideal opportunity to grow the portfolio.”

Pen will employ Berkley underwriters in Brisbane, Melbourne and Perth “to retain the market contact”.

It says it aims to make the transition seamless for brokers.

“Brokers will receive renewal invitations from Pen on Berkley renewals,” Mr Marshall said. “The majority of brokers already deal with Pen, whether in motor or other products.

“This allows Pen to offer brokers a more diverse motor product in a very competitive area of the market.”

The agreement takes effect from September 30.