Gallagher to buy stake in Edelweiss broking arm

MUMBAI: US insurance broking firm Arthur J Gallagher & Co has agreed to pick up a minority stake in

Edelweiss Insurance Brokers

(EIBL) — a part of

Edelweiss Group

that has interests in lending, wealth &

asset management

and insurance.


The transaction is subject to requisite regulatory approvals. The insurance regulator usually does not grant a broking licence and an insurance company licence to the same promoter. Edelweiss has promoted both — a life and non-life insurance company.

“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,” Edelweiss Group chairman & CEO

Rashesh Shah

said. Edelweiss did not disclose the size of stake sale or the valuation. Insurance laws allow a maximum 49% stake for foreign broking companies.

Gallagher is the fourth-largest insurance broker in the world and operates in 35 countries and services clients in 150 markets. The other large insurance brokers Marsh and Aon are already present in India. “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 & CEO of Arthur J Gallagher & Co.