Fairfax Financial Holdings of Canada has acquired UK-based global Lloyd’s specialty insurer and reinsurer Brit for $US1.88 billion ($2.41 billion).

The cash transaction continues a shopping spree for Fairfax, which recently snapped up QBE’s insurance operations in the Czech Republic, Hungary and Slovakia for an undisclosed sum.

Fairfax Chairman and CEO Prem Watsa says the Brit acquisition will cement his company’s underwriting business globally.

“Brit has an outstanding track record over the past 10 years and will continue to operate on a decentralised basis once owned by Fairfax,” he said. “With the acquisition of Brit, Fairfax will have a significant top-five position at Lloyd’s of London.”

Fairfax has a presence in Australia via subsidiary Odyssey Re, which owns underwriting agency Newline.