Global insurance broker Gallagher has grown its presence in Central and Eastern Europe with the purchase of a minority stake in Czech-domiciled insurance broker Renomia a.s. (Renomia).
Gallagher’s newly acquired 29.7 percent stake in the Prague-headquartered, family run firm, fits the global broker’s ongoing international expansion strategy.
As the largest independent broker based in the Central and Eastern Europe region (CEE), Renomia boasts broking operations in the Czech Republic, Slovakia, Romania, Hungary, Serbia, Bulgaria and Croatia as well as a franchise network in other areas of CEE.
The regional European broker has achieved double digit growth over the past five years with services covering insurance and risk management specialisms across more than 30 industries and expertise in creating and delivering employee benefit programmes. The firm’s year-on-year growth is due to a combination of organic growth and strategic acquisitions.
Vyvienne Wade, international division CEO at Gallagher, said: “Our international expansion story continues to be one of investing in economies where we can see a strong opportunity for growth, complementary to our specialisms, and where we find a strong local partner who is well aligned culturally and shares our client focus and ethics.
“Renomia fits that definition perfectly. It is an international company with a family business ethos, quality leadership team, clear vision for growth and focus on strong governance that mirror Gallagher’s own and results in unparalleled client service.”
She added: “There are clear synergies between Renomia’s core lines and our own industry specialties, creating an exciting opportunity for knowledge-sharing and further penetration within the CEE’s rapidly developing markets. We very much look forward to working closely with Jirina [Nepalova, founder, CEO and chairman at Renomia] and the team to grow our businesses together.”
Nepalova said: “Gallagher’s investment in Renomia will enable us to accelerate the growth in the region of Central and Eastern Europe and take the business to its next stage of evolution, building out an even broader range of capabilities, deeper industry expertise, an enhanced ability to service overseas clients and greater access to international markets.
“As one of the largest insurance brokers in the world, Gallagher offers us a strong international brand to partner with and an exciting opportunity to leverage the company’s global reach and team of colleagues who share our values and our commitment to putting our clients first.”
The deal is subject to regulatory approval and is expected to close in the third quarter of 2019. It builds on the relationship between the two brokers as Renomia has been a member of Gallagher’s worldwide network of strategic broker partners, the Gallagher Global Alliance, since 2004.