Insurance giant XL Catlin has bought up a US-based insurer specialising in entertainment.

The firm’s XL America has acquired Allied International Holdings, the holding company of Allied Specialty Insurance and THE Insurance, a leading insurer of the outdoor entertainment industry in America.

XL Catlin CEO Mike McGavick said: “The acquisition of a leader in a niche specialty risk business with deep longstanding client relationships and strong customer loyalty is perfectly aligned with the complex underwriting expertise of XL Catlin.

“Now, as part of the XL Catlin team, together we look forward to new opportunities to further grow the business and build upon Allied’s exceptional customer service and solid underwriting performance.”

Allied International is a leading provider of property and casualty insurance to the entertainment industry,

The company’s 3000 clients include carnivals, concessionaires, amusement parks, waterparks, fairs and festivals, as well as fireworks events and family entertainment centres.

Mary Chris Smith, chairman and president of Allied Specialty Insurance, said: “After decades spent building our brand and deep knowledge of our clients’ needs, we’re proud of our track record and incredibly excited to be taking the step towards new growth and opportunities with XL Catlin.

“In XL Catlin, we have found our partner for long-term success and resources to help us innovate for our clients’ evolving needs in this growing entertainment space.”

The deal, which is subject to regulatory approvals, is expected to close in the first quarter of next year.