Arthur J Gallagher set to take 100% ownership of Capsicum Re

Global insurance brokerage Arthur J Gallagher (Gallagher) has agreed and signed heads of terms with specialty reinsurance brokerage Capsicum Reinsurance Brokers (Capsicum Re), with a view to Gallagher increasing its investment in Capsicum Re to 100 percent ownership.

The announcement comes as the deadline approaches on Gallagher’s option to increase its existing stake in Capsicum Re.

Founded by Grahame Chilton and Rupert Swallow in 2013, Capsicum Re is a reinsurance broker working in partnership with Arthur J Gallagher as its primary treaty reinsurance broking outlet. It has grown rapidly, positioning itself as an alternative to the mainstream reinsurance brokers.

The parties will now continue their exclusive negotiations on Gallagher's ownership. Any deal remains subject to the receipt of necessary approvals and the execution of relevant agreements. The parties said they will not be commenting further at this stage.