Re/insurance broker Gallagher has expanded its presence in Asia with the acquisition of a minority stake in specialist Malaysian broker SP&G Insurance Brokers.
SP&G is a multi-discipline commercial insurance broker that specialises in coverages for the aviation market, as well as in solutions for property & casualty, marine, engineering, and other risks.
Originally set up in 1974 as a joint-venture company, current CEO Dato’ Zakaria Meranun completed a buy-out of the company in early 2014 to assume full ownership.
SP&G is based in Kuala Lumpur with an office in Johor Bahru, and reported revenues exceeding US $6 million in 2018.
“SP&G presents an exciting opportunity to expand Gallagher’s commercial insurance footprint in Asia and further extend our client reach in the global aviation sector,” said J. Patrick Gallagher, Jr., Chairman, President and CEO of Gallagher.
“This is in keeping with our growth strategy of investing in great businesses that deepen our capabilities and expand our geographic presence,” he continued.
“We are very pleased to partner with SP&G, and extend a warm welcome to Zak and his associates as they join our growing global team.”
Gallagher believes that SP&G represents a complementary fit to its global aerospace division, which does not currently have on-the-ground operations in Malaysia.
“As we expand our insurance broking presence in Asia and invest in our global specialisms, Zak and his team in Malaysia will be a valued addition to the business,” said Dick Heath, CEO of Gallagher’s Asian operations. “We are delighted SP&G has chosen Gallagher as its global partner and look forward to growing our businesses together.”
Zak Meranun, CEO of SP&G, also commented: “Partnering with a global broker that has such breadth of resource capabilities — and places equal importance on employing specialists and having an innovative outlook on insurance — has long been our ambition but it had to be the right partner at the right time.
“Gallagher’s entrepreneurial approach to risk mitigation and management, technical expertise and client advocacy when it comes to premium negotiation and claims settlement matches our own client-first approach,” Meranun added.
“Partnering with Gallagher will enable us to compete more strongly, access wider markets and pursue our ambitions for growth and diversification.”
Finally, Vyvienne Wade, CEO of Gallagher’s International division, stated: “Our investment in SP&G fits perfectly with our international growth strategy of partnering with high-performing, dynamic businesses that have a strong regional presence in stable and maturing insurance markets. SP&G is an excellent fit for Gallagher in terms of both geography and broking specialisms.”
