Talbot Underwriting is closing its only Australian office, in a move management says aims to bring “enhanced value” to its partners in the region.

The agency, which is now owned by AIG, will oversee renewals through its Singapore and London offices when the Sydney branch is shut on July 1. The branch was established in April 2015.

“With the support of our brokers and clients, our offices have built strong relationships and significant regional expertise in writing insurance and reinsurance,” CEO David Morris says in a statement to insuranceNEWS.com.au.

“These changes to our structure will allow us to serve our clients more efficiently and bring enhanced value to all our partners in the region.”

AIG declined to comment when contacted by insuranceNEWS.com.au.

The Talbot Division of Lloyd’s China will also be closed as part of the regional revamp.

“We are combining our regional underwriting capabilities into a single hub based in Singapore,” the Talbot statement says. “We intend to renew business currently written by these two offices through our Singapore and London offices. We are evaluating our crisis management/product recall strategy.”

The business has declined to say how many staff will be affected, or answer questions on the future of Talbot Underwriting Australia MD Andrew Case.

“In instances such as these, we would always explore redeployment options as a priority for our colleagues affected by any office changes,” Talbot says.

Talbot Underwriting was bought in 2007 by Bermuda-based (re)insurer Validus Holdings, which AIG acquired last year for $US5.56 billion ($8 billion).

It writes business from Lloyd’s Syndicate 1183, which lost $US63.7 million ($91.9 million) last year as a result of natural and man-made catastrophe payouts.

The business stopped underwriting construction and direct aviation last year.