Swiss giant Zurich has agreed to acquire Hong Kong general underwriter Kono Insurance for an undisclosed sum.

It says the deal will strengthen its position in the employees’ compensation segment, an area where Kono has significant expertise.

“Kono has a strong team with underwriting discipline and claims competence in construction-related insurance,” Zurich CEO General Insurance in Hong Kong Eric Hui said.

“The acquisition will enhance Zurich’s existing employees’ compensation insurance offering.

“It is our strategic intent to serve the construction industry with a wider range of insurance propositions, including engineering, credit, professional indemnity etc.”

The two parties announced the deal – which is subjected to regulatory approval – last week.

Zurich declined to comment on the value of the transaction when contacted by insuranceNEWS.com.au.

Its general insurance business and employees’ compensation portfolio ranked second in the Hong Kong market last year by gross written premium.

Under the leadership of Asia-Pacific General Insurance CEO Stuart Spencer the insurer is implementing a regional strategy that plays to its strengths in the various markets.

It has been a tough year for Zurich, with a £5.6 billion ($12 billion) bid for UK-based RSA Insurance Group derailed by losses of at least $US275 million ($387.1 million) from the Tianjin chemical storage explosions in China.

Zurich has estimated its general insurance arm will lose about $US200 million ($281.6 million) in the third quarter.