Bermudian-based Sompo International Holdings Ltd has agreed a deal for one of its US subsidiaries to acquire Service Insurance Companies, a US workers’ compensation insurance specialist.

Sompo said Service Insurance Companies brings together a differentiated distribution platform, “best-in-class” claims capabilities, and a complementary focus on the small and medium-sized enterprise segment.

“This acquisition creates a compelling opportunity to broaden Sompo’s underwriting capabilities and presence across products, customer segments and distribution channels within the attractive SME market and General Agents marketplace,” Sompo said in a statement.

“Together with Service Insurance Companies’ seasoned leadership team and proven workers’ compensation platform, Sompo is establishing a top-tier flagship for our workers’ compensation business,” said Chris Sparro, chief executive officer, North America, Sompo Commercial P&C Insurance.

Brad Davis, president of Service Insurance Companies, who will continue leading the business for Sompo, said: “We are thrilled at the opportunity to align with Sompo’s North America leadership team, financial support and strong market presence. Together with Sompo, Service Insurance Companies is better positioned to extend the reach from a monoline workers’ compensation provider into a diversified commercial insurance organisation with enhanced scale, capabilities and amplified market relevance.”

Terms of the transaction are not being publicly disclosed. The transaction is subject to certain regulatory and other customary closing conditions.