Arthur J. Gallagher acquires investment consultancy Redington

Arthur J. Gallagher, the insurance and reinsurance broking specialist, has announced the acquisition of an investment consultancy with expertise assessing managers in the insurance-linked securities (ILS) space, Redington Ltd.

Terms of the acquisition of London-based Redington Ltd. have not been disclosed, but it is a notable addition for the AJG and Gallagher business entities.

Now, like rivals Aon and MarshMcLennan, AJG will have its own investment consultancy arm, working with institutional investors largely in the UK.

Redington provides investment, research and technology services to pension funds, wealth managers and institutional investor clients primarily in the UK, including advice on manager selection in niche asset classes, such as insurance-linked securities (ILS).

AJG said that Redington’s Sylvia Pozezanac and her team will remain in their current location under the guidance of David Piltz, head of Gallagher’s UK employee benefits and HR consulting operations.

“As a leader in the investment consulting space, Redington brings exceptional talent and represents a fantastic cultural fit. Their deep capabilities in modeling and investment market research will enhance our existing consulting services and help our clients achieve superior financial security outcomes,” explained J. Patrick Gallagher, Jr., Chairman and CEO. “I am excited to welcome Sylvia and her associates to our growing Gallagher family of professionals.”

It’s an intriguing addition, as for years rivals Aon and MMC have had client touch-points throughout the ILS market value-chain, from originating risk, to structuring and selling the securities, to working with the institutional end-investors and specialist managers through their investment consultancy arms, Aon Hewitt and Mercer.

Now, AJG has an investment consultancy that has a track-record in helping UK pension funds access ILS investment manager services, which is a potentially helpful addition for the firm, as under Gallagher Re and Gallagher Securities it already has origination, structuring and investment banking expertise for ILS.