Mumbai (Maharashtra) [India], Oct 28: Diversified financial services conglomerate Edelweiss Group said on Friday that US-based Arthur J. Gallagher & Co — one of the world’s largest insurance brokerage and risk management services firms — has acquired a minority stake by way of primary equity infusion in Edelweiss Insurance Brokers Ltd (EIBL).
The deal has approval from the Insurance Regulatory and Development Authority of India (IRDAI). EBIL, a subsidiary of Edelweiss Financial Services Ltd, had announced its partnership with Gallagher in May 2019 which brings together Gallagher’s expertise in global markets and the operational excellence and distribution network of Edelweiss in India.
Through this partnership, Gallagher will be able to directly extend its global best practices along with its full array of advisory services to leading corporates in India. The merged entity will continue to operate under the leadership of Vinay Sohani as its Chief Executive Officer.
“Edelweiss and Gallagher are both deeply committed to high standards of corporate governance, the most valuable quality in financial services,” said Rashesh Shah, Chairman and CEO of Edelweiss Group.
J Patrick Gallagher Jr, Chairman, President and CEO of Gallagher, said: “We are very pleased to partner with an established financial services group such as Edelweiss to expand our commercial insurance footprint in India. This is in sync with Gallagher’s growth strategy of investing in businesses that broaden our specialist capabilities and diversify our geographic presence.”
In recent months, the Edelweiss Group has cemented several partnerships with marquee global institutions including Kora Management, Caisse de depot et placement du Quebec (one of North America’s largest pension funds), Allianz Investment Management (part of Allianz Group, one of the world’s largest insurers) and Bank of Singapore across market leading platforms in its advisory business.
The group had a revenue of Rs 10,886 crore and profit after tax of Rs 995 crore for 2018-19.