Edelweiss Group to Sell Stake in Insurance Broking Arm to Arthur J Gallagher & Co

Edelweiss Group - of which Edelweiss General Insurance is a subsidiary - has decided to sell a minority stake in the Edelweiss Broking Arm to Arthur J Gallagher & Co, a US-based insurance broking firm. Edelweiss Insurance Brokers Limited (EIBL) is a subsidiary of Edelweiss Group. The step of selling the stake to the US insurance broker has been taken with an aim to provide customers with much broader access to international market and expertise. Also, this move will lead to a wide range of insurance products and services.

However, there is no clue of the size of stake sale to be acquired by Gallagher because financial details of the deal were not disclosed. In general, insurance law allows a maximum of 49% stake for foreign broking companies. Gallagher is the world’s fourth-largest insurance broker. It operates its business in more than 30 countries. It has clients in 150 global markets.

EIBL, which was established in 2005, provides general insurance solutions to individuals and institutions. It also provides reinsurance solutions to insurance companies. The company also deals in claims management services, risk management and monitoring and designing insurance programmes.