Gallagher adds to Asian capabilities with stake in leading Malaysian broker

AJ Gallagher, the global insurance broker, risk management services and consulting firm, has added to its global programme capabilities through the acquisition of a minority stake in specialist Malaysian broker SP&G Insurance Brokers for an undisclosed price. The US-based broking firm now has six operations in the Asia-Pacific region. The Malaysian investment adds to existing operations in Singapore, Australia and New Zealand, and partnership arrangements with Philinsure in the Philippines and IBS Group in Indonesia. SP&G was originally set up in 1974 as a joint-venture company with London-based broker CT Bowring, and became part of the Marsh & McLennan group after it acquired Bowring. Current CEO Dato’ Zakaria Meranun completed a buyout of the company in early 2014 to assume full ownership. The multi-line Kuala Lumpur-based brokerage, which has traditionally specialised in aviation risks, has grown to become one of the largest commercial insurance brokers in Malaysia and generated revenue of more than $6m during 2018. “The deal extends Gallagher’s strategic development in Asia by establishing its presence in Malaysia – one of the more developed insurance markets in the region, with 6% overall premium growth predicted for full-year 2019 across life, health and property-casualty, according to projections from Allianz Research,” explained A J Gallagher. The firm said that, as an aviation-centric broker since 1974, SP&G represents a “natural and complementary” fit with Gallagher’s global aerospace division. The division has operations in the UK, US, Canada, Australia, New Zealand and ten other countries spanning Europe, Latin America and Asia. Until now, the operation had no on-the-ground operation in Malaysia. Dick Heath, CEO of Gallagher’s Asian operations, commented: “As we expand our insurance broking presence in Asia and invest in our global specialisms, Zak and his team in Malaysia will be a valued addition to the business. We are delighted SP&G has chosen Gallagher as its global partner and look forward to growing our businesses together.” Mr Meranun added: "Partnering with a global broker that has such breadth of resource capabilities – and places equal importance on employing specialists and having an innovative outlook on insurance – has long been our ambition, but it had to be the right partner at the right time. Gallagher’s entrepreneurial approach to risk mitigation and management, technical expertise and client advocacy when it comes to premium negotiation and claims settlement matches our own client-first approach. Partnering with Gallagher will enable us to compete more strongly, access wider markets and pursue our ambitions for growth and diversification.” Vyvienne Wade, CEO of Gallagher’s international division, commented: “Our investment in SP&G fits perfectly with our international growth strategy of partnering with high-performing, dynamic businesses that have a strong regional presence in stable and maturing insurance markets. SP&G is an excellent fit for Gallagher in terms of both geography and broking specialisms.”

Gallagher adds to Asian capabilities with stake in leading Malaysian broker

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