St Paul has conditionally agreed to acquire renewal rights for the £20m a year commercial business of Zenith Commercial.

St Paul International general manager Martin Hudson said: "This deal will provide a strong base of new business growth in several of our established industry sectors as well as in the commercial middle market. It will also enable us to accelerate plans for the launch of a product targeting selected middle-market commercial risks."

Zenith Commercial managing director David Drew said: "We are delighted to be joining The St. Paul where we will benefit from long term security and increased capacity to enable our underwriting and risk management team to support successful development of a mid-market account."