Broker to launch new financial and professional risks division
Arthur J. Gallagher (UK) has completed its takeover of Lloyd's broker First City Partnership.
The US broker today confirmed that its UK subsidiary, AJG UK, has signed an agreement to acquire substantially all of First City's (re)insurance broking business, including its financial and professional lines business.
In addition, First City’s UK team will join AJG UK and its US staffs will join Arthur J. Gallagher & Co.
First City’s financial and professional lines business will be merged into a new dedicated AJG UK Financial and Professional Risks division and other parts of their portfolio will be integrated into existing AJG UK divisions, including asset protection, trade and political risks and fine art specie, contingency and special risks.
These divisions will trade as part of London-based Arthur J. Gallagher International, the global trading platform of the group which employs over 600 people.
AJG UK chief executive David Ross said: “We are delighted to announce this deal, which makes sense both strategically and culturally for both parties. It is part of our development strategy to become a major force in financial and professional lines broking. After reviewing many alternatives, it was apparent that this transaction was a great opportunity.
"Our financial and professional risks offering will now be significantly enhanced by the acquisition of First City’s skilled personnel and client base.”
Tim Watkins, deputy chairman of First City said: “This is a tremendous opportunity for our clients and employees. The two organisations are complementary and, in an increasingly demanding world for intermediaries, this deal provides us with the resources and market strength to compete at the highest level.
"We will benefit from substantial efficiencies by putting our business onto the Gallagher platform.”