Aug 1 (Reuters) -

Insurer Ryan Specialty ( RYAN ) said on Thursday it has

agreed to buy specialized builder's risk insurance firm US

Assure Insurance Services of Florida.

The deal includes a cash payment of about $1.08 billion and

an additional $400 million component contingent on certain

financial performance targets achieved during a three-year

period, following the acquisition.

Specialized builder's risk insurance, also known as course

of construction insurance, is a type of insurance that helps

protect buildings under construction.

"Specializing in builder's risk, US Assure underwrites a

diversified portfolio of residential, commercial, and remodeling

projects in non-urban locations as well as large metropolitan

areas," CEO Patrick Ryan said in a statement.

Founded in 1977, US Assure operates in the small to middle

market segment of the builder's risk insurance market with a

diversified portfolio throughout the United States and

relationships with over 20,000 active agents, the company said.