London-based Capsicum Re will focus on specialist reinsurance broking

Arthur J Gallagher has teamed up with former Benfield chief executive Grahame “Chily” Chilton to launch a new London-based reinsurance broker.

The broker, called Capsicum Re, will act as the main treaty reinsurance outlet of the Gallagher group.

Capsicum Re is a strategic partnership between Chilton and Gallagher, and will be based in Gallagher’s Walbrook headquarters in London.

Gallagher said Capsicum would benefit from the expertise in its existing reinsurance broking unit, AJG Re, and the Gallagher platform as a whole.

Chilton, a well-respected figure in the global (re)insurance market, is best known as chief executive of reinsurance broker Benfield. He became chairman of Aon Benfield when the broker was bought by Aon and merged with Aon Re in 2009. Chilton left Aon in 2012.

Chilton said: “I am delighted to have had the opportunity to meet [group chief executive] Pat Gallagher and [international chief executive] David Ross and in a very short period we have created a trusted partner relationship.

“Having sold Benfield to Aon and had first-hand exposure to the experience of being a customer of one of the big three players, I am convinced there is a demand in the market for a niche reinsurance intermediary to supply highly bespoke and specialist services.

“We are working with Arthur J Gallagher to build a new brand in the reinsurance market, Capsicum Re – I can’t wait to get my sleeves rolled up and start our new venture together.”

AJG Re chief executive Matt Fitzgerald said: “The team and I are excited to be working alongside Chily and Capiscum Re.”

Ross said: “Partnership with such a legendary market figure as Chily will allow us to create a really compelling alternative to the big players.

“We see a massive opportunity for a specialist reinsurance provider. By linking his team’s talents, experience and extensive network to our established platform, we will add considerable firepower to this new offering – allowing us to really hit the ground running.”

Gallagher added: “Chily has a strong reputation and proven track record as one of the reinsurance market’s pre-eminent players. His team will add immediate value to our organisation and we are truly excited about this new partnership.”