Global insurance brokerage firm Gallagher has acquired a minority stake in Malaysia’s SP&G Insurance Brokers, the reports said. US-based Gallagher is headquartered in Rolling Meadows, Illinois.
The transaction is expected to strengthen Gallagher’s presence in Malaysia. Currently, Malaysia is one of the well-developed insurance markets in Asia.
According to Allianz Research, the Malaysian insurance market will show premium growth of six percent across life, health, property and casualty for 2019. Dick Heath, CEO of Gallagher’s Asian operations, told the media that, “As we expand our insurance broking presence in Asia and invest in our global specialisms, Zak and his team in Malaysia will be a valued addition to the business. We are delighted SP&G has chosen Gallagher as its global partner and look forward to growing our businesses together.”
SP&G Insurance Brokers is now one of the largest commercial insurance brokers in Malaysia. In 2018, the company generated more than $6 million in the country. Established in 1974, it is headquartered in Kuala Lumpur and has an office in Johor Baru.
SP&G Insurance Brokers’ main focus is on the aviation sector. However, it covers marine, engineering, personal accident, group life and health among others.
Gallagher firmly believes that SP&G Insurance Brokers will add value to the business and expand its presence in Asia. Likewise, the deal will benefit the Malaysian firm in terms of new markets access and diversification in the future.
Also, SP&G Insurance Brokers’ aviation focus will boost Gallagher’s global aerospace division operating in countries including the UK, the US, Canada, Australia and New Zealand.