XL Insurance, the global insurance operation of XL Capital Ltd., announced from its London office that it has entered into an agreement with Swiss Re to purchase Global Asset Protection Services LLC (GAPS), a loss prevention consulting service provider.
XL said it expects to complete the transaction by the end of 2007, “subject to the satisfaction of certain closing conditions.” The financial terms were not disclosed.
XL described GAPS as a “provider of unbundled loss prevention consulting services, offering individually tailored risk management solutions to risk managers, insurance brokers and insurance company clients operating on a global basis.”
The GAPS operation and XL Insurance’s existing loss prevention services “will be merged to form XL GAPS,” said the bulletin. “The company will employ more than 150 engineers worldwide, with a strong presence in America, Europe, Asia and Australia. XL GAPS will remain independent of XL’s underwriting operations and will continue to provide loss prevention consulting services to existing clients as well as to clients of XL.”
Upon completion of the transaction, Tim Heinze, currently head of GAPS, will become Managing Director, XL GAPS. He will report to John Gallagher, Global Property Chief Underwriting Officer for XL Insurance.
Clive Tobin, Chief Executive of XL’s Insurance Operations commented: “GAPS is a good strategic fit with our existing loss prevention services. This acquisition is intended to help us achieve our long-term growth plans in both the loss prevention market and as a primary insurer. Both organizations have a common focus, to offer our clients high quality risk management solutions, and we will do so by leveraging our combined engineering expertise, professional focus and state-of-the-art technology. Our employees will have an average industry experience of 17 years, which we believe will provide unparalleled expertise in helping our clients to manage risks.”
Agostino Galvagni, Head of Globals & Large Risks at Swiss Re, added: “We are delighted to find an acquirer that is committed to GAPS’ clients and employees.”
Source: XL – http://www.xlcapital.com
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