Chubb, the global insurer and reinsurer with operations in Bermuda, has agreed to acquire Healthy Paws, a US-based managing general agent specialising in pet insurance, from Aon plc, the global professional services firm.

The company said the transaction positions Chubb to expand in a niche market with substantial growth potential.

Financial terms of the deal, which is expected to close in the second quarter, were not disclosed.

"We are delighted to welcome Healthy Paws to the Chubb family," said John Lupica, vice-chairman, Chubb Group, and president, North America Insurance.

"Together, we will be able to extend the reach and amplify the impact of this esteemed pet insurance brand in a vastly under-penetrated market. As part of Chubb, Healthy Paws will empower more pet owners to fund medical care and navigate the rising costs of veterinary care."

Since 2013, Chubb has been the exclusive underwriter of the Healthy Paws pet insurance programme for Aon.

The company said the longstanding Chubb and Healthy Paws relationship positions the combination for accelerated growth while supporting a seamless transition for employees, customers and other business partners.

"Chubb has been an important part of our journey for more than a decade and is an ideal partner to enable us to continue our mission on a larger scale and offer even greater value to the pet community," said Jon Harris, who is president and COO of Healthy Paws and will continue to lead the business.

"There are tremendous opportunities ahead to expand the positive impact we have on pets and pet parents."

Founded in 2009, Chubb said, Healthy Paws has been a trailblazer in the pet insurance domain and currently serves more than 500,000 dogs and cats in the US.

The company provides programme and claims administration via a digital proprietary platform.