AssetInsure Holdings has obtained a general insurers’ operating licence from the Australian Prudential Regulation Authority. The group, which is majority owned by US investment bank Babcock & Brown and local financial services specialist Asset Underwriting, was set up a few months ago to acquire Gerling Re’s Australian operations for $60 million.

Appointing former federal Finance Minister and NSW Premier John Fahey as its Chairman, AssetInsure said it’s aiming to have its general insurance business in place and writing policies for customers by the end of the year. The group will target professional liability, property, professional indemnity (PI), directors’ and officers’ (D&O) and financial risk classes of insurance.

AssetInsure will take a carefully measured approach when it eventually enters the market, and CEO Peter Wedgwood says it will attempt to enter classes of insurance where there has previously been a lack of capacity.

“There is clearly a great deal of demand for specialist insurance products in the market, particularly for products such as PI and D&O insurance,” Mr Wedgwood said.

AssetInsure raised about $20 million from Australian investors and Mr Wedgwood’s Asset Underwriting to buy Gerling’s Australian operations. The company had been placed into run-off mode late last year by its German parent.