Arthur J. Gallagher & Co. AJG is set to acquire Kane Group’s insurance management operations (“KIM”). This buyout will help the acquirer’s Bermuda-based captive management and alternative risk programs business, Artex Risk Solutions, Inc., as well as enhance its brokerage services in Bermuda and Cayman Islands.
KIM, a global insurance management company, offers Insurance-Linked Security and structured transaction administration (ILS) services. The company specializes in the creating and managing insurance and alternative risk solutions with main focus in the healthcare, financial services, as well as transportation and construction industries.
After the acquisition, KIM will continue its operations from its locations in Bermuda, Cayman Islands, Guernsey, and in the states of South Carolina and Vermont.
KIM is renowned for its expertise in the industry and strong presence in the regions where it operates. Thus, the buyout will further boost the already robust inorganic growth portfolio of Arthur J. Gallagher.
KIM’s superior and quality customer service as well as specialized products will be accretive to Artex’s client portfolio. Also, this acquisition will enable Artex to expand its international footprint and enhance its risk management services.
This will mark the fourth takeover Arthur J. Gallagher this year. Notably, the company acquired Vincent Bomford, Couch & Wilson, Inc. on Mar 15, 2016.
Arthur J. Gallagher is well known for its spree of strategic acquisitions. In 2015, the insurance broker acquired 44 entities, including two in the risk management segment, with net annualized revenue grossing $230 million.
Inorganic route to ramp up one’s growth profile seems a well-accepted strategy among insurers as acquisitions and consolidations rage this space. Recently, Sun Life Assurance Company of Canada, the wholly owned subsidiary of Sun Life Financial Inc. SLF acquired the employee benefits business of Assurant Inc. AIZ for $940 million. Also, Marsh & McLennan Agency LLC, the middle market agency subsidiary of Marsh & McLennan Companies, Inc. MMC acquired Celedinas Insurance Group for an undisclosed amount.
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