Arthur J. Gallagher Buys Minority Stake in India’s Edelweiss Insurance Brokers

May 21, 2019

Arthur J. Gallagher & Co. announced it has purchased a minority stake in Edelweiss Insurance Brokers Ltd. (EIBL), a wholly owned subsidiary of Edelweiss Group, the Indian diversified financial services conglomerate.

The deal is subject to approval by the Insurance Regulatory and Development Authority of India. Financial details of the transaction were not disclosed.

Headquartered in Mumbai, with branches in Dehli, Kolkata and Bangalore, EIBL is a fast-growing corporate insurance broker offering general insurance solutions to institutional as well as individual clients across India, said Arthur J. Gallagher in a statement.

EIBL is well-positioned to leverage the distribution networks of its parent group, Gallagher noted.

India’s growing commercial and specialty market is supported by strong demand for specialist coverages such as renewable energy, infrastructure and cyber liability, which Gallagher said are well aligned with Gallagher’s core brokerage offerings.

“EIBL presents an exciting opportunity to expand Gallagher’s commercial insurance footprint in India, in keeping with our growth strategy to invest in market-leading businesses that broaden our specialist capabilities and diversify our geographic presence,” said J. Patrick Gallagher, Jr., chairman, president and CEO of Rolling Meadows, Ill.-based Gallagher. “We are very pleased to partner with EIBL and broaden our reach in this important market.”

“We are delighted to announce a partnership with yet another marquee global institution like Gallagher that has a similar philosophy, shared values and complementary capabilities,” said Rashesh Shah, chairman and CEO, Edelweiss Group.

“This partnership brings to our clients a much broader access to international markets and expertise, and a wider range of insurance products and services, while they continue to receive the same high-quality service,” Shah added.

Source: Arthur J. Gallagher & Co.