Montpelier Re has completed its entrance into the Lloyd's of London market and is set to increase its US presence with an estimated $4.75 million deal to acquire the General Agents Insurance Company of America.

The company has announced its wholly-owned US managing general agent Montpelier Underwriting Inc., has been granted Coverholder approval by Lloyd's and has begun to introduce business to Montpelier Syndicate 5151.

Anthony Taylor, chairman and CEO of Montpelier Re, said: "MUI's attainment of Approved Coverholder status successfully completes Montpelier's entrance into the Lloyd's market and represents a significant vote of confidence by Lloyd's in the quality of Stan Kott's management team."

While Stan Kott, CEO of Montpelier's US insurance operations, said: "We are thankful for the confidence Lloyd's has expressed in our operations by virtue of this Coverholder approval. We are excited to be able to underwrite business for Syndicate 5151 in order to grow our overall US platform. "

Based in Hartford, Connecticut, Montpelier Underwriting is the centerpiece of the company's growing US insurance and reinsurance underwriting platform. Through its division headed by Paul Keefe, as senior vice president, the company will write property facultative business in the US distributed through reinsurance brokers. Mr. Keefe has over thirty years of profitable underwriting results and for the last four years worked at Wellington (now Catlin) Underwriting Inc.

Montpelier announced the purchase of a US excess and surplus company General Agents Insurance Company of America through its indirect, wholly-owned subsidiary Montpelier Re US Holdings Ltd.

Montpelier US has entered into a stock purchase agreement with Texas corporation Gainsco for the acquisition of General Agents Insurance Company of America. General Agents Insurance Company is a licensed admitted insurer in the State of Oklahoma and is authorized as an excess and surplus lines insurer in a further 37 states.

The company is to acquire General Agents for a purchase price of up to $4.75m, subject to possible adjustments, plus the amount of policyholders' surplus that remains in General Agents Insurance Company at closing.

When the deal is closed Montpelier US will rename the company Montpelier US Insurance Company (MUSIC). MUSIC will write primarily excess and surplus line insurance in the continental US, and its underwriting operations will be based in Scottsdale, Arizona.

Mr. Kott, of Montpelier's US insurance operations, said: "We are delighted about the acquisition of General Agents Insurance Company. We are assembling a solid team of insurance specialists with proven track records of success in this business.

"With the acquisition of what will become known as MUSIC, we are that much closer to the realisation of our plans. We are committed to developing a meaningful presence in the US reinsurance and insurance market through patient and expert underwriting. Developing strong and deep relationships with our clients and brokers is key to our strategy."

Mr. Taylor, of Montpelier Re, added: "The acquisition of General Agents Insurance Company will allow us to write specialist areas of E&S business traditionally written by US insurance entities rather than through Bermuda or London insurers.

The combination of these activities represents another portion of Montpelier's strategic expansion.

Our growing US trading platform will allow Montpelier to diversify its portfolio while remaining within its core competency of underwriting primarily short-tail business.