Gallagher’s captive unit to buy Bermuda ILS firm

Artex Risk Solutions Inc., the captive and alternative risk transfer solutions unit of Arthur J. Gallagher & Co., has agreed to acquire insurance-linked securities firm Horseshoe Insurance Services Holdings Ltd. of Bermuda, Gallagher and Artex said Thursday.

Terms of the deal, which is subject to regulatory approvals and expected to close in the fourth quarter of 2019, were not disclosed.

Horseshoe, founded in 2005 with offices in London, Cayman, Sri Lanka and Charlotte, North Carolina, provides insurance management, fund administration, advisory and corporate services to the insurance-linked securities market, Gallagher and Artex said in separate statements.

Horseshoe founder, Chairman and CEO Andre Perez and his associates will continue to operate from their current locations under the direction of Peter Mullen, CEO of Artex, who noted that “Horseshoe will become the global brand of ILS services for Artex” in the Gallagher statement.

“Horseshoe Insurance Services brings us deep market expertise and service offerings within the ILS market, a critical business segment," J. Patrick Gallagher, Jr., chairman, president and CEO of Gallagher, said in the Gallagher statement.

ILS capital in place declined to $93 billion at June 30 of this year from $98 billion at June 30, 2018, according to a recent report from Aon PLC, but is expected to rebound as the industry recovers from the 2017 and 2018 catastrophe years, according to sources at last month’s Rendez-Vous de Septembre.