International insurance brokerage Gallagher has acquired a minority stake in specialist Malaysia-based broker SP&G Insurance Brokers Sdn Bhd. The terms of the transaction were not disclosed.
According to a statement by Gallagher, the deal will expand its reach in Asia by establishing its presence in Malaysia, which is one of the more developed insurance markets in the region. Projections from Allianz Research suggest that Malaysia’s insurance market will see 6% overall premium growth for the full year 2019 across life, health, and property & casualty.
SP&G is headquartered in Kuala Lumpur and has an office in Johor Bahru. It was established in 1974 as a joint venture, but was bought out in 2014 by current CEO Dato’ Zakaria Meranun. Its particular focus is on the aviation market, but it also covers property and liability risks, as well as marine, engineering, personal accident, group life & health, and other specialty lines. It generated total revenue of over US$6 million in 2018.
According to Gallagher, SP&G’s aviation focus will complement its global aerospace division, which has operations in the UK, US, Canada, Australia, New Zealand and 10 other countries spanning Europe, Latin America and Asia. However, it has not had any on-the-ground presence in Malaysia prior to this transaction.
“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,” said Dick Heath, CEO of Gallagher’s Asian operations. “We are delighted SP&G has chosen Gallagher as its global partner and look forward to growing our businesses together.”
“Gallagher’s entrepreneurial approach to risk mitigation and management, technical expertise and client advocacy when it comes to premium negotiation and claims settlement matches our own client-first approach,” added Zak Meranun, CEO of SP&G. “Partnering with Gallagher will enable us to compete more strongly, access wider markets and pursue our ambitions for growth and diversification.”
