Beazley Group has acquired London-based Momentum Underwriting Management for up to $37.5 million (￡20.6 million) in cash.

Momentum is a specialist personal accident and life managing general agency established in 2000 by former employees of CIGNA Re Europe.

The company has offices in London and Brisbane, Australia.

Following completion of the transaction, the firm will continue to operate as an agency and further its plans to establish local operations in the US.

Momentum expects to underwrite around $100 million of gross premium for 2009 and Beazley will establish two new syndicates at Lloyd’s to underwrite business generated by the firm.

Beazley, which has operations in the UK, US, France, Singapore and Hong Kong, currently manages two Lloyd’s syndicates with aggregate underwriting capacity in 2008 of ￡814 million.

The company says it is making the purchase from its own internal cash resources and according to Andrew Horton, its chief executive, the move provides an excellent opportunity to access new business that complements Beazley’s existing portfolio.

The transaction is subject to the approval of Lloyd’s and the Financial Services Authority.