The American broker will acquire the 80% remaining stake in Capsicum Re, as it already owns 20% stake
Illinois-based brokerage firm Arthur J. Gallagher has agreed to acquire the remaining 80% stake in Capsicum Re, a London-based reinsurance broker.
Gallagher already owns a 20% stake in Capsicum Re. The two companies have not revealed any further details about the deal.
Founded in 2013 by Grahame Chilton and Rupert Swallow, Capsicum Re is a reinsurance broking outlet of Gallagher.
Capsicum Re was founded as a JV between Gallagher and Capsicum Private Office
The firm was founded as a joint venture between Gallagher and Capsicum Private Office, the family trust of former Aon Benfield chairman Grahame Chilton.
Capsicum Re has platforms in London and Bermuda and operates as a full-service reinsurance broker, offering accident & health, structured capital solutions & captives, cyber reinsurance, MGAs, nuclear risks and property reinsurance.
In a statement, Gallagher said it “is pleased to confirm it has agreed and signed heads of terms with Capsicum Reinsurance Brokers LLP, with a view to Gallagher increasing its investment in Capsicum Re to 100% ownership. The parties will now continue their exclusive negotiations.”
Earlier this month, the American firm’s subsidiary Artex Risk Solutions had acquired Dallas-based EWI Re for an undisclosed amount.
Established in 1959, EWI offers reinsurance program design and placement services for captives and mutual insurance companies, run-off and legacy solutions and safety and loss control services, with a speciality risk management practice to support large insureds.
The EWI team will now report to Artex’s North American operations president Jennifer Gallagher.
In October this year, the US firm acquired Proinova, a Sweden-based insurance broker.
Founded in 1989, Proinova offers group solutions for real estate sector, offering insurance, loss prevention training and claims advocacy services for trade association members.
It also serves clients such as municipalities, hotels and conferences, business property and individual real estate owners.
Upon closing of the acquisition, Proinova CEO Sten Eriksson and his associates will continue to operate from their current location under the direction of Gallagher’s Scandinavian operations head Anders Mjaaland.