Gallagher in talks to buy all of Capsicum Re

Arthur J. Gallagher & Co. is in talks to take full ownership of Capsicum Reinsurance Brokers LLP, the joint venture it established with former Benfield Group Ltd. chief Grahame “Chily” Chilton in 2013.

In a brief statement Wednesday, Gallagher said it “is pleased to confirm it has agreed and signed heads of terms with Capsicum Reinsurance Brokers LLP, with a view to Gallagher increasing its investment in Capsicum Re to 100% ownership. The parties will now continue their exclusive negotiations.”

Currently, Gallagher owns 20% of the London-based reinsurance brokerage, a Gallagher spokeswoman said.