Arthur J. Gallagher is to enter the Chinese market after signing a joint venture agreement with Jiang Tai Insurance Brokers to establish a new Shanghai-based operation, subject to regulatory approval.
The agreement will see Gallagher take a 24.9 percent share ownership, though other terms of the transaction have not been disclosed.
Expected to launch in the first half of 2015, the new operation, trading as Jiang Tai Re, will focus on reinsurance and specialty lines.
Jiang Tai’s current President Frank Lu will lead the 25-strong team of insurance professionals.
Vyvienne Wade, international commercial director at Gallagher, said: “Our international expansion strategy is to introduce Gallagher’s expertise and capabilities into stable and emerging economies—and the opportunity rarely gets larger or more rapidly emerging than China."
"But we were only prepared to take this ambitious step with the right partner. As one of China’s largest insurance brokers with a formidable reputation, incredibly strong client relationships and cultural values aligned to our own, Jiang Tai was the natural choice."
