Marsh sale was major factor in broker Wexler taking specie account from HSBC, sources say

Arthur J Gallagher UK has snatched the remaining part of a multimillion-dollar jewellers’ block account from HSBC Insurance Brokers.

The account, which includes programmes for pawn brokers and cheque cashing, is supplied by US broker Wexler Insurance Agency and is understood to be worth around $30m (£18.57m) in premium income to the London market.

Gallagher UK already wrote more than 50% of the account within its specie unit but has now picked up the rest of the book, adding around $12m.

Two members of HSBC Insurance Brokers’ specie team are also expected to move to Gallagher UK as a result of the switch. The Wexler account, thought to be one of HSBC Insurance Brokers’ biggest specie insurance accounts, is the first major loss for the bank-owned broker since it was snapped up by Marsh for £135m in December.

Sources close to the Miami-based Wexler claimed HSBC’s sale to Marsh was a major factor in its decision to switch brokers.

A spokesman for Gallagher UK confirmed that, following the 100% transfer of the account, it had offered contracts of employment to two HSBC Insurance Brokers’ employees.

After announcing the Marsh/HSBC Insurance Brokers deal, Marsh’s chairman and chief executive Dan Glaser said HSBC Insurance Brokers’ specie practice was one of a number of areas that would generate “good growth potential in placing third-party business”, and will be managed through a dedicated business unit, called Gibbs Hartley Cooper.

Around 75% of jewellers’ block insurance is placed with Lloyd’s insurers.It is a specialist class providing insurance against different risks that can lead to the loss or damage of expensive items, including retail, wholesale, repairers and manufacturing businesses, pawnbrokers, art and antique dealers, and auctioneers.

HSBC declined to comment.