A major deal in the world of insurance and reinsurance has finally crossed the line with Arthur J Gallagher raising its interest in Capsicum Re from 33% to 100%.
The world’s fifth largest reinsurance broker was originally launched through a strategic partnership with Gallagher back in December 2013 – and now it boasts more than 150 employees with offices in the US, UK, Bermuda and South America. The reinsurer was founded by Grahame Chilton and Rupert Swallow and became the primary reinsurance outlet in the Gallagher group with the aim of challenging larger brokers by attracting the best advocates in the business.
“I am incredibly proud of all that our Capsicum Re team has achieved in just five full years of trading,” said Swallow. “2020 will be another key year of development for us, as we look to expand our US presence while ensuring our clients remain front and centre. The US is the largest reinsurance market globally, and being part of Gallagher provides us with access to one of the industry’s largest global brokers and its extensive US network. Gallagher has been beside us through every step of the journey, since our inception, so this deal is the natural evolution of our relationship.”
Now, with the takeover complete, there will be no management changes. CEO Swallow will continue to lead the business, reporting to Gallagher’s UK broking and underwriting division CEO Simon Matson. Meanwhile, Simon Behagg will remain as COO, while Grahame Chilton re-joins Gallagher as chairman of its global property and casualty business, reporting to Tom Gallagher, CEO of that division.
“We’ve considered Grahame and Rupert to be trusted partners ever since we embarked on our Capsicum Re co-venture six years ago,” said J. Patrick Gallagher Jr., chairman, president and CEO. “Given their excellent market reputation and strong track record we didn’t hesitate to back their business model and their vision for creating a market-leading reinsurance broker. We are delighted to now move forward to the next chapter of Capsicum Re’s story as an integral part of our global brokerage operations and we welcome Grahame back into an active leadership role.”