With the completion of its acquisition of the treaty reinsurance enterprise of Willis Towers Watson, Arthur J. Gallagher and its reinsurance unit Gallagher Re has a chance to speed up gross sales of insurance-linked securities (ILS), its senior executives advised Artemis.
Talking in an interview with Artemis simply after the acquisition of Willis Re was introduced, new International CEO of Gallagher Re James Kent and AJG CEO Pat Gallagher, defined that the insurance-linked securities (ILS) enterprise providing of Willis Re Securities is a key space of alternative.
As we’ve defined earlier than, Gallagher already has particular ILS, disaster bond and collateralized reinsurance experience in its broking groups and its insurance coverage administration unit Artex, which in fact owns ILS main facilitator Horseshoe.
Meaning the AJG group has already been fairly energetic in ILS, however now with the belief of the Willis Re Securities staff and its experience in structuring and promoting ILS and disaster bond securities, in addition to capital elevating, the corporate now has a holistic ILS market providing.
“We had been a giant ILS participant earlier than this, not within the safety aspect, however the two marry up very, very properly,” AJG CEO Pat Gallagher advised us.
Gallagher Re’s new International CEO, James Kent, expanded on this, “Like each enterprise inside the legacy Willis Re enterprise, we’re very happy with the providing and the staff that exists, and the ILS staff is totally a part of that. I believe the important thing, and it actually comes again to integration, is how will we finest combine that inside the entirety of the Gallagher group, and particularly Gallagher Re, to finest serve our shoppers and make it best for our shoppers, by way of new gross sales.
“So, Gallagher had some investments in companies which have an ILS affiliation. However the level concerning the Willis Re staff, will probably be firmly embedded inside the mixed reinsurance companies and I believe there’s an actual alternative for us to speed up gross sales.
“Like in all places else, we might be looking for to make investments in that enterprise in expertise to help what we’ve right now and speed up ahead for tomorrow.”
Gallagher Re now has an thrilling alternative to evolve its reinsurance broking and ILS administration choices, to now incorporate the flexibility to construction and promote securities issuances.
If that may be developed right into a fully-integrated providing, it should profit the group and supply synergistic alternatives to deliver ILS capital extra carefully to its reinsurance shoppers, in addition to embed ILS danger switch inside its broader insurance coverage and reinsurance market product-set.