British insurance and reinsurance intermediaries Hyperion Insurance Group and RK Harrison Holdings are engaged in merger talks.

The combined “super independent” would be the largest independent, employee-owned insurance intermediary group in the world.

It would have annual revenue of £400 million ($735 million) and 3000 employees in 37 countries, including Australia and New Zealand.

Hyperion subsidiary Dual set up an Australian operation in 2004 as a specialty lines underwriting agency in the mid-market sector.

Dual Asia-Pacific CEO Damien Coates says the proposed merger has attracted “an extremely positive response” from the local market.

“For the Australia and New Zealand market, from a Hyperion perspective, this represents a significantly strengthened position in the region,” he told insuranceNEWS.com.au.

“The merger would strengthen the capability we provide to retail brokers in the mid-market sector. It will mean an even stronger commitment to the market.”

Mr Coates says the Dual brand would be retained within the new entity, which would continue to be called Hyperion Insurance Group.

The Howden, RK Harrison and Aqua brands would also be maintained.

Hyperion CEO David Howden says the two businesses are “extremely complementary” and offer “enhanced and diverse service offerings and capabilities”.

“The business will bring together the strengths of superior specialty lines expertise with extensive geographical reach.”

The deal is subject to regulatory approvals.