Acquisition hoped to biuld a platform to expand business

Arthur J Gallagher UK has refused to comment on speculation that it is about to acquire London broker First City. It is understood that the two firms have held extensive talks and are ready to agree a deal.

First City Insurance Group Ltd, which owns Lloyd’s broker First City Partnership, is thought to be keen on a deal to build a platform in which to expand the business. It has a specialist professional risks and financial services insurance business and writes the majority of its business in the USA.

US-based Gallagher has already made a number of acquisitions in the UK, last year taking on Oxygen Insurance Managers and 18 staff from Heath Lambert’s Global Business Solutions.

First City also refused to comment.

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