Sale to Gallagher in client and staff best interest, says Oval chief

Oval’s sale to Arthur J Gallagher would be in the best interests of its clients, staff and shareholders, group chief executive Peter Blanc has told staff.

On Friday Insurance Times revealed that Oval had entered exclusive discussions to sell to Arthur J Gallagher.

The all-staff email sent this week did not explicitly name Gallagher. But it did say: “The buyer operates in many countries across the world and believes strongly in local presence.”

Blanc said: “If this acquisition succeeds, Oval, which is already one of the top 20 players in the UK broking market, will become the most significant insurance broker in the UK.

“We will be able to command more competitive terms for our clients and access a much wider array of products and services for their benefit.”

He went on to offer staff his “personal reassurance” that the sale would be good for Oval and said staff could contact him if they had any concerns.

“I am obviously bound by confidentiality agreements as to what I can say, but I will try to answer your questions,” he said.

In the email, seen by Insurance Times, he added: “I am convinced that this deal is absolutely in the best interests of Oval’s stakeholders – clients, staff and shareholders.”

“For our staff it represents a superb opportunity. The buyer operates in many countries across the world and believes strongly in local presence. The culture and ethos of the two companies are almost identical. This is a key reason why we have chosen to enter into exclusive talks with this particular company, and should this deal proceed I am filled with confidence of our future together.”

Blanc stressed that the exclusive talks were in “very early stages” and subject to shareholder and regulator approval. “As such, please don’t expect to hear anything until later on in the spring,” he wrote.

Buying Oval would give Gallagher an extra 25 offices in the UK and add another £78m in turnover, bringing its total brokerage to about £540m.