Allied World Assurance Holdings (Ireland) has reached an agreement with Gravity Underwriting (Gravity), to acquire its 21.2% stake, for an undisclosed sum.

As per terms of the strategic alliance, Gravity will assist in business facilitation for Allied World Europe’s property book of business.

London-based Gravity operates as a managing general agent (MGA) and delivers an array of property and casualty products for insurance brokers in the UK SME market.

Commenting on the partnership, Allied World Europe president Julian James said that the investment is part of a strategy to establish its European business.

The new partnership will enable the company to offer its collective customers with improved service and financial security, James added.

Gravity managing director Alan Thorne commented, "Gravity is commencing a new phase of growth in the U.K. retail insurance market and we are proud to be working with Allied World Europe."

In February 2013, its US operation introduced a new surety line of business for clients in the country, to offer environmental surety bonds as well as contract and commercial surety bonds.

Through its subsidiaries, Allied World Assurance Company caters property, casualty and specialty insurance and reinsurance product and services internationally.