NU Online News Service, March 29, 2:42 p.m.EST

Itasca, Ill.-based insurance broker Arthur J. Gallagher &Co. said it plans to acquire the insurance brokerage business ofFirstCity Partnership Ltd. of London. Financial terms were notdisclosed.

FirstCity Partnership Ltd. is a Financial Services Authority(FSA) authorized Lloyd's insurance broker and advisory firm.According to its Web site, the firm was founded in 1993 and has anoffice in Manchester, England, and a liaison office in the UnitedStates. The employee owned and operated company reported handlingannual premiums of more than $500 million for the year ending May31, 2009.

The firm specializes in insurance coverage for all aspects ofthe financial services industry as well as coverage lines forprofessional risk, asset protection, trade and political risks,fine art specie, contingency and special risks for clientsworldwide.

Tim Watkins, deputy chairman for FirstCity, and a team ofbrokers will operate as the financial and professional linesdivision, a dedicated unit within Gallagher's United Kingdombrokerage operation, AJG said.

The remainder of their colleagues will merge into Gallagher'sexisting U.K. brokerage operations. All divisions will operateunder the direction of David Ross, chief executive officer ofArthur J. Gallagher (UK) Ltd., Gallagher's approved Lloyd's ofLondon broker. AJG said there are approximately 150 people withFirstCity.

Mr. Ross was quoted by Reuters as saying the deal would bringclose to an additional $30 million into the firm.

Gallagher said the transaction is expected to close in April ofthis year.