Speciality insurance provider Trisura has acquired the Canadian surety business of Sovereign General Insurance (Sovereign Insurance) for an undisclosed sum.

The deal includes a portfolio of contract, commercial and developer surety accounts, which generated an annual premium of over C$16m ($11.63m) in 2021.

Through the acquisition of Sovereign Insurance’s operations, Trisura hopes to enhance its position in the developer and mid-market contract surety segments in Canada.

For Sovereign Insurance, the deal will see it exit the surety business in Canada to focus on core commercial and speciality lines of business.

Trisura Canada president and CEO Chris Sekine said: “Sovereign’s surety business is a great fit for Trisura as it allows us to further our position as a leader in the Canadian surety marketplace while supporting our growing North American surety platform.”

Sovereign Insurance COO Colette Taylor said: “Sovereign’s decision to divest of our surety business is part of a longer-term strategy to focus on our core business.

“We are confident that we have found a good fit in Trisura, a well-known, established leader in the surety market and a company that shares similar values in its commitment to its brokers, clients and employees.”

Other than surety, Toronto Stock Exchange-listed Trisura operates in risk solutions, corporate insurance, fronting and reinsurance segments.

Earlier this year, Trisura formed a partnership with US-based cyber insurance provider At-Bay to act as the issuing carrier for At-Bay’s cyber and tech E&O programme.