(Bloomberg) — Validus Holdings Ltd., the Bermuda- based reinsurer, agreed to buy Western World Insurance Group Inc. for $690 million in cash to expand in specialty lines of coverage in the U.S.

Western World, based in Franklin Lakes, New Jersey, will operate as a separate business, Validus said today in a statement.

Validus, led by Chief Executive Officer Ed Noonan, has used deals to expand in businesses such as crop and catastrophe coverage. Western World specializes in excess-and-surplus lines, or coverage that isn't available from insurers licensed by a state.

Western World offers an “excellent U.S. distribution platform, outstanding management and industry-leading technology,” Noonan, 56, said in the statement. The deal “creates a franchise that will provide compelling products and services for our customers.”

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