Gallagher International opens operation in Brazil
Arthur J. Gallagher International is to open a facultative reinsurance brokering operation in Sao Paulo, Brazil.
The operation—to be named Gallagher Brazil—will allow, with the recent regulatory changes, more reinsurance to be placed locally.
David Ross, chief executive officer of Gallagher International, said: “Gallagher Brazil will focus on building upon Gallagher’s existing book of facultative reinsurance business, which has particular strengths in the petrochemical, energy and construction sectors, and will focus on arranging facultative reinsurance for property/casualty, surety, construction, political risks/trade credit and D&O risks.”
Gallagher International currently has operations in 15 countries, and with Brazil’s strong economy, it will allow the company to expand its presence in Latin America and the Caribbean. Ross said: “We have the advantage that we are not starting from scratch in Brazil.”
The business will be formed by the acquisition of Securitas Re and its book of business from Estãter Gestáo de Investmentos Ltda (Estãter) and two private individuals. Estãter is the owner of Securitas TRR, which will remain one of Gallagher Brazil’s key retail partners.
Chairman, president and chief executive officer of Arthur J. Gallagher & Co., J. Patrick Gallagher, Jr. explained: “Part of our international strategy is to build a stronger presence in key global hubs such as Brazil. Gallagher Brazil is a good example of how we can transform our existing correspondent broker relationships into solid operating partners.”
The operation will be run locally by Fernando Prado, with an office of three associates under the direction of David Battman in London, reporting ultimately to Chris Bowen, chairman of Gallagher International. Gallagher added: “Their areas of expertise will complement our international operations, and we’re extremely pleased to welcome Fernando and his associates to our growing Gallagher family of professionals.”
Ross revealed that the operation will work with a number of retail insurance brokers and cedants in Brazil and will be supported by Gallagher specialty teams based in London.