20 July 2015 Insurance

AJG acquires stake in Colombian broker

Arthur J Gallagher (AJG) International, the UK-based international brokerage division of AJG, has acquired a 65 percent stake in Colombian energy and construction specialist ARM Re.

AJG entered into an agreement to buy ARM mid-way through last year. This follows AJG’s 2013 creation of a reinsurance operation in Chile, which recently diversified into retail broking with controlling stakes in marine specialist Bareyre and personal lines affinity specialist QRM.

Established nine years ago, ARM is led by Fernando Tellez and specialises in construction, energy and mobile equipment risks, handling facultative business across terrorism, transportation, property, third party liability, and contractors’ machinery and equipment.

The new operation will be led by chief executive Carlos Rodriguez Angulo, formerly head of sales and partner at JLT Re Colombia. Angulo joined ARM last year at the time AJG contracted to buy the shareholding in ARM.

In addition, Fernando Tellez has been appointed as chief operating officer.

Vyvienne Wade, international commercial director at AJG, said: “Our investment in ARM creates the perfect platform upon which to realise our ambitious plans for expansion in one of the strongest performing Latin American territories. Gallagher will continue to invest in compelling opportunities where we see profitable businesses run by experienced, entrepreneurial teams that are symbiotic to our existing London-based specialty expertise.

“Together Carlos, Fernando and their colleagues create a formidable team, focused on strong growth and the provision of powerful specialty client propositions in a strong, stable and successful country.”

Angulo added: "Securing the backing of major international brand like Arthur J Gallagher is exactly what we need to take the business to its next exciting level. ARM has achieved a great deal since starting up in 2006 but this investment will transform our client service capabilities and reach. In fact, the first year of operations within the Gallagher network has seen us nearly triple our customers, revenues and professionals.”

Grahame Chilton, chief executive officer of AJG International, added: “We have clear strategic growth plans for the international business and this deal is another great example of us building out our Latin American presence and delivering on that strategy. We are pleased to welcome Carlos, Fernando and the team to the expanding Gallagher family.”

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