Allied World Assurance Company Holdings, AG has agreed to acquire the Hong Kong and Singapore operations of Royal & Sun Alliance Insurance plc (RSA) for around $215 million.

Switzerland-based Allied World, which started up in Bermuda after the 9/11 terrorist attacks and which still has substantial operations on the Island, will look for the acquisition to boost business in Asia and said and the deal would be “accretive to Allied World’s earnings immediately”.

“This is a truly unique opportunity to acquire leading specialty businesses in key Asian markets,” said Scott Carmilani, Allied World’s chief executive officer in a statement released today. “This transaction will significantly deepen and broaden our presence in Asia.

“The business brings regional market leadership, complementary product offerings, extensive distribution and an experienced and talented management team to Allied World, strengthening our global insurance franchise.”

RSA has a long history in the region, with connections that go back more than 40 years in Hong Kong and more than 180 years in Singapore.

In 2013, the businesses had total gross premiums written of approximately $250 million. The business includes a niche group of specialty lines, including casualty, construction and engineering, marine and property.

Allied World stated: “Under the terms of the transaction, Allied World will acquire the in-force portfolio and related assets and liabilities of both branches. Allied World’s current operations in Hong Kong and Singapore include an established commercial insurance business.

“Subject to adjustments, on completion, Allied World will fund the purchase price of $215 million with cash on hand. In addition to the purchase price, Allied World expects that an additional $90 million will likely be required to appropriately capitalise the business on an ongoing basis.”

The transaction, which is subject to regulatory approvals in Singapore and Hong Kong as well as court approval in Singapore, is expected to be completed during the first half of 2015.

Barclays is acting as financial advisor to Allied World and Baker & McKenzie is acting as legal counsel.