August 21, 2006 by Canadian Underwriter
Lockton, Inc. today announced has reached a definitive agreement to purchase Alexander Forbes International Risk Services, which is the international brokerage operation of Alexander Forbes Ltd., the world’s ninth largest insurance broker.
The $170 million (GBP 90.2 million) transaction will make Lockton the largest independent,privately owned global insurance broker.
The combined business will have more than $600 million in revenues and 3,700 professionals with locations in Europe, North America, Latin America and Asia.
According to the Company, Alexander Forbes International Risk Services’ operation, in combination with its position in the European broker partnership EOS RISQ, gives Lockton the ability to serve clients from 142 local offices in 43 countries.
The acquisition, which is subject to regulatory approvals, is expected to be completed by the end of October 2006.
Following completion, the business will operate under the Lockton name and remain based in London.
The purchase includes Alexander Forbes’ insurance brokerage operations in corporate risk, professional indemnity, property, construction, aviation, marine, energy and specialist business such as political risk and contingency.
John Percy-Davis, current Executive Chairman of Alexander Forbes International Risk Solutions, will work closely with Lockton’s international team and continue as Chairman of EOS RISQ, the European broker partnership.
Lockton will have majority ownership in Lockton International Holdings Ltd., the new entity, with minority investment from management and Trident III, L.P., an investment fund managed by Stone Point Capital, LLC of Greenwich, CT.
Lockton will remain a privately held firm owned by the Lockton family and key executives.