Gallagher Subpoenaed, Buys Australian Brokers

Gallagher Subpoenaed, Buys Australian Brokers

By Mark E. Ruquet

NU Online News Service, Dec. 3, 12:32 p.m. EDT?Arthur J. Gallagher & Co. said its third party administrator subsidiary, Gallagher Basset Services Inc., has received a subpoena from New York Attorney General Eliot Spitzer.[@@]

The Itasca, Ill.-based insurance broker said the subpoena is part of Mr. Spitzer's ongoing investigation of contingency fee commissions. The subpoena does not seek information about the parent company insurance brokerage operations, it said.

Gallagher said it has received subpoenas and requests for information from various other state attorneys general and insurance departments regarding the firm's brokerage operations. The broker said it is cooperating fully with all inquiries.

The firm also announced the acquisition of FPE Insurance Brokers Pty Ltd. of Sydney, Australia.

Terms of the transaction were not disclosed.

First organized in 1993, FPE Insurance Brokers Pty Ltd. is a full-service retail insurance broker with a staff of six. FPE offers risk management and commercial property-casualty insurance services to their clients in Australia. The firm also specializes in the placement of insurance for the entertainment sector.

Fred Esteban, former director and principal of FPE, and his associates will join Arthur J. Gallagher Australasia Holdings Pty Ltd. and will report directly to Peter Kelly, managing director of Gallagher Australasia's Corporate Services Division, the Itasca, Ill.-based broker said.