US underwriter American Safety Insurance Holdings is gearing up to acquire Cayman-based insurer Bluestone Surety for an undisclosed sum.

The insurer wholly-owned subsidiary, American Safety Holdings has inked stock purchase agreement to acquire Bluestone Agency, and its Cayman insurance subsidiary, Bluestone Surety, according to the Royalgazette.

The transaction is expected to close by the end of second quarter, after obtaining essential regulatory approval and other standard conditions.

ASI president and chief operating officer Joseph Scollo was quoted by Royalgazette as saying that the company looks forward to David Pearlstein and the Bluestone team joining ASI.

The two organisations are very compatible and the addition of Bluestone’s commercial surety expertise will further our strategic objective of growing our current product offerings and expanding our distribution network," Scollo told Royalgazette.

Bluestone president and CEO David Pearlstein said that the financial strength of ASI will open up additional markets for the insurer in the surety space and provide access to enhanced capabilities to expand their existing channels.

"The combination will allow us to better serve our agency plant and offer greater opportunities for our employees. Bluestone was built by providing a high level of customer service, making ASI’s solutions-oriented culture a fit with our existing corporate philosophy," Pearlstein.