US insurance broker takes stake in local broking firm

Edelweiss Group, India's leading diversified financial services conglomerate, has announced that US-based Arthur J. Gallagher & Co. (Gallagher) - one of the world's largest insurance brokerage and risk management services firms - has acquired a minority stake by way of primary equity infusion in Edelweiss Insurance Brokers Limited (EIBL). The latter is a subsidiary of Edelweiss Financial Services.

The acquisition has been approved by the IRDAI.

EIBL announced its partnership with Gallagher in May 2019, which brings together Gallagher’s expertise in global markets and the operational excellence and distribution network of Edelweiss in India. Through this partnership, Gallagher will be able to directly extend its global best practices, along with its full array of advisory services, to leading corporates in India.

The merged entity will continue to operate under the leadership of Mr Vinay Sohani as its CEO. Speaking on the development Mr Rashesh Shah, chairman and CEO of Edelweiss Group, said, “This will help both partners to deepen the market for insurance products in India, where the potential for growth is enormous.’’

Commenting on the partnership, Mr J Patrick Gallagher, Jr , chairman, president and CEO of Gallagher, said, “This is in sync with Gallagher’s growth strategy of investing in businesses that broaden our specialist capabilities and diversify our geographic presence.”

In recent months, the Edelweiss Group has cemented several partnerships with marquee global institutions including Kora Management, Caisse de dépôt et placement du Québec (one of North America’s largest pension funds), Allianz Investment Management (part of Allianz Group, one of the world’s largest insurers) and Bank of Singapore.

EIBL is one of the leading composite insurance brokers in India, providing general insurance solutions to institutions as well as individuals and reinsurance solutions to insurance companies.

Source: Asia Insurance Review