Marine mutual liability insurer The North of England P&I Association (North P&I Club) and fishing vessels insurer Sunderland Marine Mutual Insurance (SMMI), are in discussions to merge their operations.
The combined company is expected to provide improved financial stability for members, as well as, an expanded product portfolio.
North P&I Club chairman Pratap Shirke said that the companies have agreed in principle to investigate the practicalities of a merger considering their complementary global operations and business similarities.
"The merger will result in one of the largest global marine insurance providers, which North P&I Club's directors believe will provide considerable financial stability for the Club's members and significantly enhance our competitive position," Shirke added.
SMMI chairman Trevor Hart said, "Combining the business interests into one group would create a significant global marine insurance operation, enabling us to continue growing our business with a competitive edge, whilst maintaining service excellence."
The merger is subject to due diligence from both the companies, apart from regulatory approvals.