Evolution of European broking sector continues

It has been an active few weeks in the European broking sector as leading international players JLT, Aon, BMS and Arthur J Gallagher all announced expansion plans, through three acquisitions and a startup. This week, JLT joined London market insurers in establishing a platform for EU business post-Brexit, through the acquisition of Belgian specialty broker Belgibo from EXMAR Group. JLT said the move complements its existing Benelux operations, but will also support its service to clients in all 26 EU states and three European Economic Area states after the UK has left the EU. Based in Antwerp, Belgibo is active in marine, credit and political risks, aviation, cargo, employee benefits, logistics, construction and professional services. BMS Group, the London-based independent insurance and reinsurance broker, announced it is setting up in Spain with a new Iberia operation. Meanwhile, Arthur J Gallagher has expanded its footprint in Scandinavia with the acquisition of property and casualty insurance broker Nordic Försäkring & Riskhantering in Gothenburg, Sweden. Aon’s Dutch operation – Aon Groep Nederland – announced last month that it has entered into an agreement to acquire Unirobe Meeùs Groep (UMG) from life insurance and asset management group Aegon for €295m. The new BMS Iberia will be led by recently appointed directors Fernando Claro in Madrid and Domingo Albi in Seville. They both report to David Battman, BMS managing director and head of international. BMS reported turnover in 2016 of some €70m, a trading profit of €17m and ceded premium of €880.5m. Its total book comprises 60% insurance business and 40% reinsurance. It is the seven largest reinsurance broker in the world. The group is owned by Minova Insurance, the employee-owned insurance holding company that was launched in the summer of 2014 with the backing of Capital Z Partners Management. Minova Insurance also owns Pioneer Underwriters, an insurer and managing general underwriter that manages more than €200m of premium. This group is led by Dane Douetil, group chief executive officer and former CEO of Lloyd’s insurer Brit. BMS said the launch of BMS Iberia is consistent with its global integrated “hub-and-spoke” strategy and will complement its existing international operations. The broker said that to start with, the new Iberia operation would focus on financial and professional lines, affinity and reinsurance markets. The broker added that the new operation will work closely with broking teams in London and Miami to place inbound reinsurance from Latin America and the Caribbean, plus reinsurance and retrocession from Madrid into London. BMS Iberia will also help expand the work of BMS’s global practice group for affinity. “The new venture will provide BMS with a long-term solution for accessing business in the European Union post-Brexit,” added the broker. Mr Battman commented: “Our aim is to bring something new to the Spanish and Portuguese markets. We believe that our target client base – corporations, independent retail brokers, professional and sports associations, MGAs and insurers – is seeking a new type of broker that simultaneously offers real expertise, focusing on the customer through personal service and the use of technology.” “As BMS expands, we see our entrepreneurial culture attracting the very best talent in the market, and expect to make further hires from a variety of sources in the near future,” he added. Madrid’s role as a hub for Latin American business was another reason for the BMS move. Back in 2015, it announced the launch of its Miami operation with the appointment of Jose Astorqui to the newly created role of chief executive officer, BMS Latin America. BMS said at the time it saw attractive opportunity for growth in the region and would use Miami as its base to service business from Latin America, Central America and the Caribbean. The new Iberian operation will help achieve this goal. Arthur J Gallagher said Scandinavia is a core area of strategic development for the broking group. The broker’s latest deal builds on its 2013 acquisition of international marine and energy broker Bergvall Marine in Norway and last year’s acquisition of a majority shareholding in trade credit, political risk and construction specialist Brim in Stockholm, Sweden. Nordic Försäkring & Riskhantering was created in 1991. The acquisition brings new markets to Arthur J Gallagher’s existing business in areas such as life sciences, transportation and engineering. Nordic Försäkring & Riskhantering is also an affinity specialist, working with trade associations, professional groups and industry sectors to create tailored solutions for members or their customers, explained Arthur J Gallagher. “The deal extends Gallagher’s footprint in Sweden to cover the two largest cities, with Gothenburg an important commercial hub for manufacturing and industry. It also includes Nordic’s recent acquisition of local commercial insurance broker Dahlkvist, which specialises in passenger transportation, engineering and construction lines,” stated the broker. Jonas Bergfeldt, CEO of Nordic Försäkring & Riskhantering, said: “Having built a successful and family-owned broking firm over the past 25 years, we were looking for a global partner to help take the business to the next level for the benefit of our clients. Gallagher demonstrates not only a shared entrepreneurial culture but a commitment to the Scandinavian market. Its appreciation for on-the-ground expertise, to ensure customers continue to receive the right blend of local service whilst taking advantage of Gallagher’s global reach and influence, makes them the right partner for us.” Vyvienne Wade, CEO of the overseas division at Arthur J Gallagher, added: “Nordic represents a valuable opportunity to expand our operational footprint in Scandinavia in line with our growth strategy of investing in market-leading businesses that broaden our specialist capabilities and diversify our geographic presence. Its particular blend of specialty focus offers great synergy with Gallagher’s London market and international broking operations, and we’re extremely pleased to welcome the team into the expanding Gallagher family.” Aon’s acquisition of UMG from life insurance and asset management group Aegon for €295m is subject to works council advice and approval by the Dutch regulators. The deal is expected to close in the fourth quarter of 2017. Aon said that once the acquisition is completed, it will be the leading insurance broker and risk adviser in all business-to-business market segments in the Netherlands. Marc van Nuland, country manager of Aon Netherlands, said: “This acquisition will drive value for clients of both UMG and Aon, as we combine the knowledge and experience of UMG with Aon’s teams in the Netherlands, as well as with our global network.” Also this week, Ed, the London-based global reinsurance, wholesale and specialty broker, announced it has been granted a commercial insurance intermediary license by the Guernsey Financial Services Commission. Nick Bachmann has left Willis Towers Watson to become divisional director of professional and executive risks, to direct the expansion of Ed’s offering on the island. He reports to James Baird, director, professional and executive risks. Ed recently announced the significant expansion of its professional and executive risks offering. Mr Baird said: “Obtaining a license in Guernsey is indicative of the Ed strategy and of how we will build our professional and executive risks business. This allows us to offer clients in this important, international financial centre direct access to global capacity and expertise, whilst delivering solutions locally. “Nick’s local expertise and understanding of international financial markets makes him the ideal candidate to drive our aspirations in Guernsey. I am very pleased to welcome him to the team.”

Evolution of European broking sector continues

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