The Travel Protection Group (TPG) has acquired PJ Hayman (PJH) for an undisclosed sum in a deal that gives it 10% of the UK travel insurance market share.
It will now provide protection for more than two million travellers this year, with premiums topping £38m.
TPG deals with travel agents' and tour operators' requirements, while PJH specialises in product design and marketing for the insurance broker market.
PJH will remain in its offices in Stansted House, Rowlands Castle, in Hampshire, and will expand its claims handling and administration departments.
Details of the group's restructuring, service plans and range of products following the acquisition will be announced shortly.
PJH managing director, Peter Hayman, said: “It is very much business as usual, but with the benefit of being part of a larger group.”
The acquisition also brings together Hayman, the current chairman of the Association of Travel Insurance Intermediaries, and two past chairmen, Stephen Howard and David Hall under one roof.