Argo Group International Holdings, an underwriter of specialty insurance and reinsurance products, has announced an offer to acquire Heritage Underwriting Agency.

The strategic combination of Argo and Heritage will create a broader underwriting platform, with increased market presence, as well as an extended geographic capability and distribution network.

Subject to relevant legal and regulatory requirements and to satisfaction of customary conditions for a transaction of this type, the deal is expected to close within three months. Argo intends the Heritage management team to remain in place.

HSBC served as financial advisor to Argo Group during this transaction and Mayer Brown International acted as Argo Group’s outside legal counsel. KBC Peel Hunt and Hines Associates served as financial advisors to Heritage and Clyde acted as its outside legal counsel.

Mark Watson, president and CEO of Argo Group, said: Coming just eight months after our merger with PXRE Group, our acquisition of Heritage is another important milestone towards becoming a leading international specialty underwriter.