Aberdeen-based Central Insurance has acquired Edinburgh-based Castle Cairn Insurance Brokers in £2.3m deal, marking its second acquisition in 2011.

The acquisition is expected to provide Central Insurance with a strong position to grow and expand its reach in the central belt following its Glasgow opening in 2010.

The takeover also boosts Central Insurance’s premium placement into the UK insurance market to over GBP60m, marking it among the UK’s top 10 independent brokers, assessed by Insurance Age.

The acquisition is financed by the cash and bank debt.

Central Insurance managing director Iain Henry said that the acquired firm will be led by the existing team at Castle Cairn under the Central Insurance brand.