Reinsurance brokerage Capsicum Re is set to rebrand itself, to reflect its parent company, as Gallagher Re from October 1st, aligning its reinsurance business with the broader Gallagher retail and wholesale insurance broking arm.
Arthur J. Gallagher & Co. increased its interest in Capsicum Reinsurance Brokers LLP to 100%, from the previous 33%, effective January 1st, 2020.
Capsicum Re was launched in December 2013 as a strategic partnership between Gallagher and its founders.
The reinsurance broker has since expanded rapidly to become the world’s 5th largest reinsurance broker, placing $5.4 billion of gross written premium annually through its 160-strong team based across its global reinsurance hubs in the UK, US, Bermuda, Brazil and Chile.
Simon Matson, CEO of Gallagher’s broking and underwriting operations in the UK, commented, “What this team has achieved in only six years of trading is remarkable, and that is thanks to an amazing group of talented individuals that came together and believed in what Capsicum Re would deliver for clients. With the vision of ultimately becoming a core part of Gallagher’s proposition, that team built a top five global reinsurance broker from the ground up and a blank sheet of paper. And today’s announcement kick-starts the next iteration as we look to realise the magnitude of untapped opportunity that lies ahead for our exceptional reinsurance team that will be Gallagher in name as well as in spirit, with one identity, one plan and one huge shared ambition.”
Rupert Swallow, CEO of Capsicum Re, added, “Everything the team has achieved to date has been done in true partnership with Gallagher. Right from the very beginning, Gallagher’s incubation of and investment in Capsicum Re has enabled us to build out this incredibly talented team where we combine top transactional expertise and entrepreneurial energy with market-leading analytics. It’s now the right time to fully align on brand, draw on the power of Gallagher and take our expertise, capabilities and solutions to every corner of the global Gallagher family and network, and beyond.”
Pat Gallagher, Chairman, President and CEO of Gallagher, said, “I’ve said it before and I’ll say it again: what Chily, Rupert and the entire team have created is the best start-up I’ve seen in my 45-year career. A reinsurance broker run by brokers for brokers and one that made client advocacy and innovation its top priority from day one.
“We didn’t hesitate to back the vision and business plan of the founding Capsicum Re team because we knew it was a blueprint for how to create a market-leading reinsurance broker. Their reputation and track record gave us total confidence in their ability to succeed – a confidence that has been repaid many times over. What the team behind Gallagher’s reinsurance business has achieved is almost unbelievable. And now, trading as Gallagher Re, they’re just getting started.”
This news follows Capsicum Re’s announcement in July of changes to its executive, as co-founder, Raja Balasuriya, has been appointed as Chairman, taking over from fellow Capsicum Re founder, Grahame Chilton.