International property and casualty insurance holding company Markel Capital has reached on agreement to purchase Abbey Protection to boost its product range in the UK and improve reach within the country’s retail market.

Under the terms of the transaction, for each share of Abbey Protection, its shareholders will receive 115 pence in cash, valuing the entire issued and to be issued share capital of Abbey Protection at nearly £116.5m.

Post-acquisition, the acquired entity will be managed by London-based Markel International, a division of Markel Corporation which writes insurance and reinsurance business through eight divisions and through offices across the UK, Europe, Canada, Latin America and Asia Pacific.

Abbey Protection operates as a specialist provider of legal, taxation related professional fees insurance products and services to small, and medium sized enterprises, in the UK.

The transaction requires approval from Abbey Protection directors, its shareholders, as well as regulatory approvals from the FCA, the GFSC and the SRA.

Markel International president and chief operating officer William Stovin said, "Our financial and underwriting strengths, and our established relationships with UK SME customers, fit well with the Board of Abbey Protection’s objectives for the further development and expansion of their business.

"It’s our expectation that Abbey Protection will continue to operate under its own successful brand, while our capital and risk appetite will enable it to retain more underwriting risk and to explore growth initiatives currently beyond its reach."

In May, Markel Corporation acquired Bermuda-based Alterra Capital in a cash and stock deal valued at nearly $3.13bn, to expand its product offerings and geographic reach, while enabling to better serve its customers.