Artex Risk Solutions has acquired the insurance management operations of Kane.

The move means Artex’s operations in Bermuda and Cayman will combine into Kane’s.

David McManus, president and CEO of Artex, said: “Kane is rightly recognised in the industry for the quality of its people and its innovative products and platforms.

“This merger strengthens us considerably in Cayman and Bermuda and brings us industry-leading expertise in insurance linked securities and structured transactions administration.

“Combining these resources with the power Artex’s distribution list network is expected to drive exponential growth in each of the domiciles represented.”

Artex’s Bermuda and Cayman businesses will combine into Kane’s under the respective leadership of Rob Eastham and Linda Haddleton.

Together with the Guernsey, Channel Islands, office, they will report to Nick Heys, the CEO of Artex International.

Artex is a wholly owned subsidiary of US-based Arthur J Gallagher & Co, one of the world’s largest insurance brokerage and risk management services firms.

Mr McManus said: “This truly is a transformational merger and I’m delighted to welcome Rob, Linda, Ann and their teams to Artex.”

Simon Hinshelwood, group chief executive of Kane, said that the firm had been approached “by a number of parties” over the last six months who shared Kane’s views that the industry would benefit from consolidation.

He added: “The board determined that the best way to explore the value of those approaches was to hold a tightly controlled but formal process.

“That process concluded with the board selecting Artex for multiple reasons but importantly to our staff and clients, its culture, its distribution reach, its strength in Europe and the USA and the opportunities we believe it affords the Kane team for growth.”

Kane’s US operations in South Carolina and Vermont, will merge into Artex’s US business under the leadership of Jennifer Gallagher, president of Artex North America.

The merger means that Artex will have 370 staff and more than 1,400 customers, served through more than 900 risk-bearing entities in 27 domiciles.

Mr McManus said: “We believe we’re the fastest growing and most diverse insurance manager in the industry.

“This exciting combination of operations and capabilities allows Artex to consolidate its position among the top three insurance management services providers in the world.”

He added the merger would provide “clients and business referral networks with substantially greater scale and resource breadth”.

The merger is expected to close at the end of this month.

Kane’s insurance management arm was founded in 1984 to specialise in the formation and management of insurance and alternative risk provision, particularly in the healthcare, insurance, financial services, transportation and construction industries.

It also provides insurance-linked security and structured transaction administration.