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 of FirstCity Partnership Ltd. of London. Financial terms were not disclosed.
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 an office in Manchester, England, and a liaison office in the United States. The employee owned and operated company reported handling annual premiums of more than $500 million for the year ending May 31, 2009.
The firm specializes in insurance coverage for all aspects of the financial services industry as well as coverage lines for professional risk, asset protection, trade and political risks, fine art specie, contingency and special risks for clients worldwide.
Tim Watkins, deputy chairman for FirstCity, and a team of brokers will operate as the financial and professional lines division, a dedicated unit within Gallagher's United Kingdom brokerage operation, AJG said.
The remainder of their colleagues will merge into Gallagher's existing U.K. brokerage operations. All divisions will operate under the direction of David Ross, chief executive officer of Arthur J. Gallagher (UK) Ltd., Gallagher's approved Lloyd's of London broker. AJG said there are approximately 150 people with FirstCity.
Mr. Ross was quoted by Reuters as saying the deal would bring close to an additional $30 million into the firm.
Gallagher said the transaction is expected to close in April of this year.
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