London, 02 July 2014: Following today’s confirmation that the acquisition of Noraxis Capital Corporation is complete, Arthur J. Gallagher has become a top five Canadian insurance broker.
Bringing together Gallagher’s existing Canadian broking operations with those of Noraxis will create a strong platform and extensive regional spread for future national growth. It also creates the opportunity to develop a high-end specialty business in Canada through the effective deployment of existing Gallagher strengths in energy, construction and mining as well as wider London-based specialty expertise and capabilities.
The deal simultaneously establishes Gallagher as a major player in the Canadian employee benefits business, complementing existing operations in Calgary and Ottawa, with a similarly strong platform for growth, and substantially widens its geographic personal lines footprint. It also sees Gallagher expand into new specialist niche areas in Canada, such as real estate and condominiums, while building out existing expertise in strongly complementary areas such as professional indemnity and financial lines.
Ken Keenan, Noraxis Group President, said: “Today is a truly exciting day as we begin a new chapter in our story, becoming part of one of the world’s largest insurance brokers with a first-class reputation — one that shares our client-first approach to business, our service philosophy and entrepreneurial spirit. Just like Gallagher, we have built our business by acquiring brokers known to be the best in their geography and niche, and now we can focus on harnessing our core areas of complementary expertise and collective strength to best effect.”
“We are delighted to formally welcome the Noraxis team into the Gallagher family,” said J. Patrick Gallagher, Jr., Chairman, President, and CEO. “The stage is now set for solid growth in Canada with a great leadership team that will also attract new merger partners, allowing us to replicate our proven strategy of partnering with smaller, family-owned and entrepreneurial brokers.”
CEO of Arthur J. Gallagher International David Ross added: “We’ve been looking hard for the right opportunity to grow our business in Canada and know that in Noraxis we’ve found the perfect partner to take this next strategic step. Early on in our acquisition discussions, Noraxis changed from being a company we wanted to buy to a group of people we wanted to invest in — and that immediate sense of affinity doesn’t come along every day.”
He continued: “This is a game-changing transaction for us. By joining forces with a group of high-performing businesses that are incredibly well-respected and led by hugely talented individuals, we have become one of the strongest brokers in Canada. We can’t wait to get started.”
With a strong focus on commercial lines, Noraxis is a full service brokerage operating across five Canadian provinces — Alberta, Manitoba, New Brunswick, Nova Scotia and Ontario — from 26 offices, employing more than 650 people.
Arthur J. Gallagher, the brand name for Arthur J. Gallagher & Co. outside of the United States, employs 6850 staff across the UK, Australia, Singapore, Caribbean, Canada, Chile, Norway and New Zealand.
Arthur J. Gallagher & Co. (NYSE: AJG), an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 27 countries and offers client service capabilities in more than 140 countries around the world through a network of correspondent brokers and consultants.
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