Arthur J. Gallagher – the international division of Arthur J. Gallagher & Co. – has extended its investment in Latin America with a 65 percent shareholding in independent Colombian energy and construction specialist ARM Re Ltda (ARM). Other terms of the transaction were not disclosed.
Established nine years ago, ARM is led by Fernando Tellez and specializes in construction, energy and mobile equipment risks, handling facultative business across terrorism, transportation, property, third party liability, and contractors’ machinery and equipment.
Arthur J. Gallagher entered into an agreement to buy ARM mid-way through last year and regulatory formalities have now been completed.
This latest Latin American transaction follows Arthur J. Gallagher’s 2013 creation of a reinsurance operation in Chile – which recently diversified into retail broking with controlling stakes in marine specialist Bareyre and personal lines affinity specialist QRM – and its 2014 entry into the Peruvian insurance market with a stake in reinsurance specialist JAO & Partners.
The new operation in Colombia – the third largest economy in Latin America – will be led by Chief Executive Carlos Rodriguez Angulo, formerly head of sales & partner at JLT Re Colombia. He joined ARM last year at the time Arthur J. Gallagher contracted to buy the shareholding in ARM. Fernando Tellez takes the role of chief operating officer.
Vyvienne Wade, international commercial director at Arthur J. Gallagher, said: “Our investment in ARM creates the perfect platform upon which to realize our ambitious plans for expansion in one of the strongest performing Latin American territories. Gallagher will continue to invest in compelling opportunities where we see profitable businesses run by experienced, entrepreneurial teams that are symbiotic to our existing London-based specialty expertise.
“Together Carlos, Fernando and their colleagues create a formidable team, focused on strong growth and the provision of powerful specialty client propositions in a strong, stable and successful country.”
Carlos Rodriguez Angulo commented: “Securing the backing of major international brand like Arthur J. Gallagher is exactly what we need to take the business to its next exciting level. ARM has achieved a great deal since starting up in 2006, but this investment will transform our client service capabilities and reach. In fact, the first year of operations within the Gallagher network has seen us nearly triple our customers, revenues and professionals.”
Grahame Chilton, CEO of Arthur J. Gallagher International, said: “We have clear strategic growth plans for the international business and this deal is another great example of us building out our Latin American presence and delivering on that strategy. We are pleased to welcome Carlos, Fernando and the team to the expanding Gallagher family.”
Source: Arthur J. Gallagher
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