KUALA LUMPUR (Jan 6): Gallagher, a US-based global insurance broker, risk management services and consulting firm, has extended its investment in Asia with the acquisition of a minority stake in specialist Malaysian broker SP&G Insurance Brokers Sdn Bhd.

Terms of the transaction were not disclosed.

Vyvienne Wade, chief executive officer (CEO) of Gallagher's international division, said the investment in SP&G fits perfectly with its international growth strategy of partnering with high-performing, dynamic businesses that have a strong regional presence in stable and maturing insurance markets.

In a statement today, Gallagher said the deal extends the company's strategic development in Asia by establishing its presence in Malaysia, which is one of the more developed insurance markets in the region with a 6% overall premium growth predicted for 2019 across life, health and property-casualty according to projections from Allianz Research.

"As an aviation-centric broker since 1974, SP&G represents a natural and complementary fit with Gallagher's global aerospace division, which has operations in the UK, the US, Canada, Australia, New Zealand and 10 other countries spanning Europe, Latin America and Asia — but, to date, no on-the-ground operation in Malaysia," it added.

Originally set up in 1974 as a joint-venture company, SP&G CEO Datuk Zakaria Meranun completed a buy-out of the company in early 2014 to assume full ownership.

With a near 50-strong team, SP&G has since grown to become one of the largest multi-discipline commercial insurance brokers in Malaysia, generating revenues of more than US$6 million in 2018. Based in Kuala Lumpur, it has an office in Johor Baru.

"SP&G has a particular focus on the aviation market, but also offers tailored insurance solutions for property and liability risks, as well as marine, engineering, personal accident, group life and health, and various other specialty lines," said Gallagher.

"As we expand our insurance broking presence in Asia and invest in our global specialisms, Zakaria and his team in Malaysia will be a valued addition to the business," Dick Heath, CEO of Gallagher's Asian operations, said.

"Partnering with a global broker that has such breadth of resource capabilities — and places equal importance on employing specialists and having an innovative outlook on insurance — has long been our ambition but it had to be the right partner at the right time," said Zakaria.

"Partnering with Gallagher will enable us to compete more strongly, access wider markets and pursue our ambitions for growth and diversification," he added.