Gallagher eyeing growing Indian insurance market with full Edelweiss stake
Global broker Arthur J Gallagher is looking to expand its business in the growing Indian insurance market two years after making its maiden presence with the acquisition of a minority stake in Mumbai-based Edelweiss.
Gallagher has now agreed to become full owners of Edelweiss Gallagher Insurance Brokers (EGIBL), with the acquisition of 100 percent interest in the company from its parent Edelweiss Group.
Gallagher previously held 30 percent in the insurance broking business, acquired in May 2019 to give it wider access to international markets and global expertise.
Headquartered in Mumbai, with branches in Delhi, Kolkata and Bangalore, EGIBL offers general insurance solutions to clients across India. The business operates across four areas; corporate, affinity & association, reinsurance & global, and digital solutions.
The acquisition of the remaining shares of EGIBL will help enable a deeper integration with Gallagher’s global operations, helping scale up the business significantly. It will also give clients access to a larger suite of insurance products and services. The business will rebrand to Gallagher in the coming months.
The transaction is subject to approvals by the Insurance Regulatory and Development Authority of India.
Vyvienne Wade, Gallagher chairperson of global broking in Europe, Middle East, & Asia, said: “We are delighted that Edelweiss’s insurance broking business will become fully owned by Gallagher once we have the necessary regulatory approval. Since we started our partnership with Edelweiss in 2019 we have enjoyed an excellent relationship with the team under the leadership of Vinay Sohani. We view India as a key and strategic market for the insurance industry and for Gallagher, given its scale and growth potential, and we see many interesting opportunities for further development of the business.”
Simon Matson, Gallagher CEO of global broking in Europe, Middle East and Asia, added: “ Gallagher has ambitious growth aspirations in Asia, and Edelweiss’s insurance broking business is a fantastic addition to our global team. Our colleagues in Edelweiss share our values, client focus and ambition for the future. We are looking forward to working with them even more closely and supporting them to deliver the very best of Gallagher to clients in India.”
Rashesh Shah, chairman of Edelweiss Group, said: “At Edelweiss, we have always nurtured and scaled businesses, joining hands with the right partners to create long-term value. We have had a successful association with Gallagher and we believe that they will add further value to the business in the long run. We believe in doing what is right for the business and the customer, and integrating the business with Gallagher will give it a global edge and achieve our objectives. It also provides us with the flexibility to reallocate capital and invest in scaling up our fast-growing life and non-life insurance businesses, making this a win-win for both of us.”
Varun Bajpai, president of Edelweiss Group added: “We are excited to commence the next phase of our business journey along with Gallagher. Insurance broking is increasingly becoming a global play and we look forward to drawing on Gallagher’s strategic insights and leveraging its expertise across products and technology to capitalize on the growing opportunity in the space.”
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