Tawa, a non-life insurance run-off consolidator, is set to bolster its portfolio with the acquisition of US-based PXRE Reinsurance Company for some $114 million (£54.6 million).

The acquisition will be funded through placing £27.8 million in shares, with the remainder satisfied from existing cash reserves and borrowing. The PXRE acquisition is Tawa’s first since its AIM listing and marks the firms entrance into the US market.

The acquired company primarily reinsures property, marine and aerospace with a catastrophe-related focus. Its operations were placed into run-off in February last year following the downgrading by analysts of its US parent Argo Group in the wake of the 2005 hurricanes in the Gulf.