Daily Insurance Industry News
Daily Insurance Industry News
Wednesday 18th of July 2018
February 26, 2008

Aon acquires Gallagher Re in $30 million deal

by David Masters

Story link: Aon acquires Gallagher Re in $30 million deal

Aon acquires Gallagher Re in $30 million deal

Aon has reported the acquisition of Gallagher Re’s U.K. and U.S. businesses.

Aon said that it has “signed definitive agreements to acquire substantially all of Gallagher Re’s U.K. and U.S. reinsurance brokerage business.”

In a statement regarding the acquisition, Aon revealed that the agreement includes an initial payment of around $30 million in cash, and a further payment related to the revenues generated in the year following the acquisition.

Staff from Gallagher Re will join Aon Re Global.

Aon Re Global’s executive chairman, Michael O’Halleran, said of the acquisition: “As a result of this transaction, we now will have a significantly larger presence in the U.S. accident, health and life markets, along with enhanced capabilities in the U.K. specialty, casualty and financial institutions business.

“Additionally, Gallagher Re has invested significantly in index-based capital markets solutions, which align well with our integrated capital solutions strategy and which will add to our industry-leading Aon Capital Markets team.

“We will be able to utilize our scale in accounts, analytics, and services to drive innovation and significantly improve margins over a larger base, delivering immediate impact to our clients.”

Aon Re Global’s CEO, Andrew Appel, added: “This acquisition further enhances Aon Re Global’s position as the number one reinsurance intermediary and as a premier destination of choice for top talent.”


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