CGM Gallagher acquires insurance portfolio of Goddard brokerage
Avia Collinder, Business Reporter
CGM Gallagher Group on Tuesday announced the acquisition of the general insurance business of Minvielle & Chastanet Insurance Brokers (MCIB), based in the Eastern Caribbean.
The transfer of the portfolio to CGM Gallagher took effect on Monday, August 14.
Matthew Pragnell, chief executive officer of the CGM Gallagher Group, said that with the acquisition, St Lucia will now become a credible third hub for the brokerage firm whose principal operations are in Barbados and Jamaica, but which also has a presence in St Vincent.
CGM will also "assume [MCIB] offices in Dominica and Antigua," Pragnell said.
He declined to disclose the value of the acquisition, but said that "at last look" revenues at MCIB "were doing a little over US$2 million" annually.
"Obviously, some of that would not be part of the deal, but it will be a substantial acquisition which certainly strengthens our footprint in the Eastern Caribbean substantially," he said.
CGM Gallagher, he said, is the largest intermediary/broker in the Caribbean. The company is owned 20 per cent by ICD Group and 80 per cent by Arthur J. Gallagher & Company.
MCIB is owned by Minvielle & Chastanet Limited, which is owned in turn by Goddard Enterprises Limited.
"We were number two in St Lucia behind MCIB, so our St Lucian business will more than double. We have a licence already in Dominica. We did not have an office there but now we will have," said Pragnell.
"In Barbados the impact is also substantial, but CGM is already either number one or number two there. It will be accretive," he said.
No real estate was involved in the deal.
MCIB is a more-than-two-decade-old brokerage. Goddard put the business on the market earlier this year.
"What we are doing is running the old company off. Any renewal which comes up to MCIB will now be renewed by CGM Gallagher," said Pragnell.
"There is a trail of claims and liabilities which you just need to, in the proper course of business, run off. We will be servicing the claims in the correct manner," he said.
The MCIB portfolio will be rebranded CGM Gallagher. The rebranding will be executed alongside the transfer of business, and will be accompanied by a marketing programme, Pragnell said.