A further notable diversification is planned by Skuld with the acqusition of the Scandinavian Marine Agency - Gerling Norway hull and machinery business.

The Norwegian protection and indemnity club has signed a ltter of intent to purchase SMA/Gerling.

The deal will give Skuld renewal rights on a 6,000 vessel book of business paying premium of $40m.

The plan is that SMA/Gerling will operate separtely from Skuld's existing hull business written through its Lloyd's of London syndicate 1897.

Although SMA/Gerling will write on Skuld's paper, syndicate 1897, operating in parallel, will not be affected by the acquisition.

SMA/Gerling is run by Tron Nummedal who has a long track record as a successful underwriter. The intention is that he and his 19 strong team will continue to run the business on a day-to-day basis.

Nummedal's reputation was sufficiently strong for the German Gerling group to make his Oslo based operation the hub of its hull insurance business.

The deal has yet to complete and remains subject to regulatory approval. But  the acquitiion should be signed off during the course of this year.

"This is a very exciting deal for Skuld and is very much in line with out strategy of diversification," said Skuld chief executive, Stale Hansen.

The Skuld chief said he was proud to welcome Nummedal on board. "The most important thing that we are committed to is ensuring that brokers and policyholders experience no downgrade in service. It is simply a change of ownership and we are confident that in Skuld they will enjoy the service and competence that our existing partners and clients rely on," he added.

"I'm very pleased that SMA/Gerling Norway can announce its intended acquisition by Skuld," said Nummedal. "For me, my staff and our clients it was important that we found a partner that shares our commitment to the quality of our underwriting operations, takes price in its members and importantly is dedicated to the care of clients. I'm truly excited about the next step for my team and our business as we come together under the Skuld banner."