The Argus Group is expanding its business operations offshore for the first time in more than two decades.

The company announced yesterday that it has signed an agreement to purchase Norwich Union International Insurance Company Limited (NUIIL) from Aviva plc.

Gerald Simons, President and CEO of the Argus Group said that his company is keen to expand its business operations and as such NUIIL is an ?excellent fit with Argus Group?s business model?.

NUIIL is the largest insurer in Gibraltar with over 50 percent of market share specialising in property and motor insurance.

?NUIIL has been in the property and casualty business for over 30 years and we know their parent company very well, having worked with them for many years,? Mr. Simons said.

?We saw an opportunity in Gibraltar and it was very attractive to us to expand beyond our shores. The acquisition also diversifies our exposures in the insurance world and finally at this time with investment markets generally being unexciting this opportunity looked even more attractive.?

Mr. Simons says that the Gibraltar company also offered other synergies. ?Gibraltar?s resident population is just over 30,000 so it is the same scale of Bermuda, they speak the English language, their insurance is run along the British lines as ours is in Bermuda and we share a common heritage and British law so all of those factors are attractive to us,? he said.

Argus may be the largest Bermuda-owned insurance company, but it has not owned a company outside of Bermuda since it withdrew from the Caribbean market more than two decades ago.

Mr. Simons does not however rule out further expansion in the future since the local market is very competitive.

?Certainly we will look at any opportunity that comes along to see if it fits within our business model and this one clearly does,? he said.

?We at Argus have long recognised that the market in Bermuda is saturated with domestic insurance companies serving the Bermudan population both the business community and private individuals.?

Argus expects to compete the purchase of NUIIL by December 31 this year pending regulatory approval.

NUIIL has 19 staff and Argus expects no redundancies as a result of the transaction however NUIIL will be rebranded to reflect its new ownership.

Argus will also continue NUIIL?s agency arrangement to write a portfolio of Maltese motor business.