XL Insurance, the global insurance operation of XL Capital has reached an agreement with Swiss Re to purchase Global Asset Protection Services (GAPS), a loss prevention consulting service provider.

The transaction is expected to be completed by the end of this year.

GAPS is a provider of unbundled loss prevention consulting services, offering individually tailored risk management solutions to risk managers, insurance brokers and insurance company clients operating on a global basis.

The GAPS operation and XL Insurance's existing loss prevention services will be merged to form XL GAPS, according to the company, and will employ more than 150 engineers worldwide, with a strong presence in America, Europe, Asia and Australia.

It will remain independent of XL's underwriting operations and will continue to provide loss prevention consulting services to existing clients as well as to clients of XL.

Clive Tobin, chief executive of XL's Insurance Operations said: "GAPS is a good strategic fit with our existing loss prevention services. This acquisition is intended to help us achieve our long-term growth plans in both the loss prevention market and as a primary insurer.

"Both organisations have a common focus, to offer our clients high quality risk management solutions, and we will do so by leveraging our combined engineering expertise, professional focus and state-of-the-art technology.

"Our employees will have an average industry experience of 17 years, which we believe will provide unparalleled expertise in helping our clients to manage risks."