Mon | Jun 21, 2021

ICD Group shrinks holdings in CGM Gallagher

Published:Sunday | May 13, 2012 | 12:00 AM
Matthew Pragnell ... says nothing will change under the switch of ownership.

International insurance broker Arthur J. Gallagher & Company has increased its ownership share in CGM Gallagher Group Limited (CGMG)

Arthur J. Gallagher International said it purchased an additional 41.5 per cent stake in the company from partner the ICD Group, upping its stake to a majority 80 per cent.

ICG Group retains the other 20 per cent.

"When the opportunity arose to become the majority shareholder in CGM Gallagher, we did not hesitate. The Caribbean is a buoyant market, one in which we wish to strengthen our presence, and further investment in CGM Gallagher gives us the ideal platform from which to build additional relationships in the region," said David Ross, chief executive officer of Arthur J. Gallagher International, in a press release.

"While it was not an easy decision for us to reduce our stake in CGM Gallagher, there is no doubt that a greater focus by AJG will enhance the company's ability to offer the very best to our customers, which has been and will continue to be our principal goal. We remain a significant shareholder and look forward to sharing in a bright future with the CGM Gallagher team and our great partners, AJG," said Joseph M. Matalon, chairman of the ICD Group.

The value of the deal was not disclosed.

The CGM Gallagher Group manages a business with premiums in excess of US$160 million.

Illinois-based Arthur J. Gallagher & Company first partnered with CGM in 2007 when it acquired a near 40 per cent stake in the company.

The company was then rebranded CGM Gallagher Group.

CGMG currently has offices in Jamaica, Barbados, St Vincent, St Lucia and Grenada; and licences to operate in Antigua, Anguilla and Dominica and correspondents in Guyana, Suriname, Trinidad and Tobago, the ABC Islands and Puerto Rico.

Matthew Pragnell, chief executive officer of CGM Gallagher, says there will be no change in management or otherwise at the company.

"It is the first time within the insurance sector we have had an investment like this and the prime or strategic objective is to maintain our global reach and market access," said Pragnell.

"AJG brings us market access, good representation into Lloyd's and the catastrophe markets, and our customers have benefited from their market reach and industry expertise as one of the leading brokerages in the world," he said.

AJG has operations in 17 countries and offers client-service capabilities in more than 110 countries around the world through a network of correspondent brokers and consultants. AJG trades on the New York Stock Exchange.

sabrina.gordon@gleanerjm.com