Gallagher expands Asian presence with stake in SP&G Insurance Brokers
Global insurance broker, risk management services and consulting firm Gallagher has extended its investment in Asia with the acquisition of a minority stake in specialist Malaysian broker SP&G Insurance Brokers (SP&G). Terms of the transaction were not disclosed.
Originally set up in 1974 as a joint-venture company, SP&G’s current CEO Dato’ Zakaria Meranun completed a buy-out of the company in early 2014 to assume full ownership. With a near 50-strong team, it has since grown to become one of the largest multi-discipline commercial insurance brokers in Malaysia, generating revenues of more than $6 million during 2018. It is based in Kuala Lumpur with an office in Johor Bahru.
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 percent overall premium growth predicted for the full year 2019 across life, health and property-casualty, according to projections from Allianz Research.
SP&G has a particular focus on the aviation market, but also offers tailored insurance solutions for property and liability risks, as well as marine, engineering, personal accident, group life & health and various other specialty lines.
As an aviation-centric broker since 1974, SP&G represents a natural and complementary fit with Gallagher’s global aerospace division, which has operations in the UK, US, Canada, Australia, New Zealand and 10 other countries spanning Europe, Latin America and Asia — but, to date, 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.”
Zak Meranun, CEO of SP&G, said: "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.”
