BAIG acquires U.S. aviation group

U.K. insurer The British Aviation Insurance Group Ltd. (BAIG) has acquired U.S. specialty underwriter Associated Underwriters Inc. (AAU) for an undisclosed amount. BAIG focuses on global aviation risks while AAU acts as a syndicate manager in the aviation and satellite markets. Subject to regulatory approval, the deal became effective from the beginning of September this year.

BAIG, which operates as an aviation risk “pool manager” in Canada, holds roughly a 20% of the local market with approximately $25 million in net written premiums. BAIG acquired New Jersey, U.S.-based AAU from The Chubb Corporation and the CNA group who will remain in managed “risk pools” to be managed by BAIG. AAU is said to hold a “leading” position in the U.S. aviation market and writes about $9 million in premiums in the Canadian market. AAU has eight branches in the U.S. and maintains an office in London, U.K. for writing satellite business. Although each of the operations will retain their existing trade names for marketing purposes, the two companies will be merged under a holding company called Global Aerospace Underwriting Managers Ltd. Commenting on the deal, BAIG’s CEO Tony Medniuk says, “AAU has a tremendous reputation in North America built on an intimate knowledge of that market and excellent customer relationships, while we have long been an established international player in aviation. The purchase of AAU confirms and deepens our global commitment to the aerospace industry.” The deal is not expected to have any material impact on BAIG’s Canadian operations.