Gallagher buys stake in Peruvian broker
Arthur J Gallagher (AJG) and its strategic partner, Mexican broker Grupo CP, have purchased a majority stake in Peruvian reinsurance specialist JAO & Partners. Terms of the transaction were not disclosed.
Established four years ago by chief executive Jose Antonio Osterling, JAO specialises in treaty, specialty and facultative reinsurance and is the largest independent reinsurance broker operating in Peru, based on premiums ceded.
Vyvienne Wade, international commercial director at AJG, said: “The local expertise of the JAO team, overlaid with the Arthur J Gallagher brand, put us in an enviable position to take advantage of this maturing market.
“Jose Antonio has an unrivalled reputation in the market and the strengths of his business are symbiotic with our London-based Specialty operation, creating a great opportunity to harness and extend our established mining, construction and reinsurance specialisms within this emerging geography.”
This latest Latin American investment follows AJG’s strategic alliance struck in 2012 with Grupo CP – Mexico’s leading insurance broker – and the creation of its Chilean reinsurance broker, led by Lionel Soffia, in June 2013.
Juan Ignacio Casanueva Pérez, chairman of Grupo CP, said: “We are very proud to have completed this transaction with Arthur J. Gallagher and are excited to be able to work with such a professional organisation as JAO & Partners. The Mexican and Latin American market is growing – our hard work, combined with acquisitions and strong alliances such as this - will allow us to be one of the market leaders.”
Osterling said: "Not only is it fantastic to have the backing of one of the world’s largest insurance and reinsurance brokers, but AJG shares our family-based culture and entrepreneurial spirit, which have been evident throughout our discussions and prove they are the ideal partner for us to join forces with. The Peruvian market is ready for another major international broker and I and my team are delighted to be leading the new venture."
With an average gross domestic product growth of 6.4 percent from 2002 to 2012 and per capita income growth of more than 50 percent over the same decade, Peru is one of the fastest growing and most dynamic economies in Latin America.
