US-based insurance brokerage and risk management services company Arthur J. Gallagher & Co. (AJG) has further cemented its presence in Scandinavia through the acquisition of 85 percent majority share in Brim AB.
Through this buyout, AJG taps into a first-class client base of about 2,000 diverse customers.
The acquisition is also a boost to AJG’s successful purchase of Norway-based marine, energy and specialty insurance broker Bergvall Marine in December 2013.
As part of the deal, CEO ikard Öijermark and partner Fredrik Enderlein will continue Brim’s operation under the ultimate headship of Grahame Chilton, head of AJG’s international brokerage operations in London.
Established in 2001, Brim is a specialty insurance and reinsurance broker that offers two core practices. Its credit and political practice provides financing support for key infrastructure projects worldwide, while the construction practice supports commercial and residential building development, as well as infrastructure and civil engineering across Finland, Norway and Sweden.
The Sweden-based company now employs 19 people and generates approximately 11 million revenues per year.
In 2013, Brim snagged the prestigious Insurance Award from Risk & Försäkring, a unit of Svenska Nyhetsbrev, a top supplier of independent business, financial and industrial news in Sweden.
That same year, it opened an office in Dubai as part of its customers’ international expansion.
Arthur J. Gallagher and Brim have been global alliance partners over the years; AJG’s London office has assisted Brim on its projects with Lloyd’s of London.
“Brim’s operations are highly regarded and well respected in the International insurance market. For many years, we have had a successful correspondent trading relationship with Brim, during which time we developed strong working relationships with their team,” said J. Patrick Gallagher, Jr., Chairman, President and CEO of AJG.
“Taking this next step allows us to partner with an outstanding group that has extensive experience in their particular markets, adds their expertise to the long list of capabilities we will be able to offer our international customers, and broadens our Scandinavian presence. We are extremely pleased to welcome Rikard, Freddy and their colleagues to our growing Gallagher family of professionals.”
Rikard Öijermark, CEO of Brim, commented: “We have enjoyed great success working with Gallagher’s London Specialty, International and Reinsurance teams and built a strong rapport with the organisation and its leadership. Being part of the Gallagher group will open up new avenues of growth for us globally, along with access to a whole new range of products, services and capabilities to offer to our clients. We see a great and exciting future ahead of us and look forward to becoming part of the Gallagher team.”
Brim’s acquisition is AJG’s first purchase in the third quarter of 2016. In the previous quarter, it completed 10 buyouts as part of its strategic international expansion.
Aside from expanding the company’s geographical reach, these acquisitions also support its portfolio of services and reinforce its position in risk management industries and retail and wholesale insurance brokerage services.