Insurer Allied World has announced it will underwrite trade credit and political risk policies in-house in London following the acquisition of programme administrator Latin American Underwriters (LAU).

The transaction, subject to financial conduct authority (FCA) approval, sees Allied World acquire both LAU’s London and New York-based underwriting teams, as it continues to provide cover for exporters, importers and financial institutions.

“Bringing [the teams] in-house is part of our strategic commitment to building a stronger presence in this speciality area of the market as we build our global franchise,” says president, Bermuda and international insurance at Allied World, Frank D’Orazio.

“LAU has significant experience underwriting trade credit and political risk, and we expect very little change for our clients during this period of transition.”

LAU has underwritten trade credit and political risk covers solely for Allied World since 2010, writing gross premiums totalling US$28.5mn in 2013.

Commenting on the deal, president at LAU, Nick Hedley, tells GTR: “LAU and Allied World share a common desire to build upon the success of the joint venture over the past four years, and aim to increase the insurer’s position in the market. Both parties felt that the best way to achieve this was to bring LAU in-house.”