November 20, 2007 by Canadian Underwriter
XL Insurance, the global insurance operation of XL Capital Ltd (NYSE: XL), has reached an agreement with Swiss Re to purchase Global Asset Protection Services LLC (GAPS), a loss prevention consulting service provider.
The transaction is expected to be completed by the end of 2007, subject to the satisfaction of certain closing conditions.
GAPS is a provider of unbundled loss prevention consulting services, offering individually-tailored risk management solutions to risk managers, insurance brokers and insurance company clients operating on a global basis.
The GAPS operation and XL Insurances existing loss prevention services will be merged to form XL GAPS. The company will employ more than 150 engineers worldwide, with a strong presence in America, Europe, Asia and Australia.
XL GAPS will remain independent of XLs underwriting operations and will continue to provide loss prevention consulting services to existing clients as well as to clients of XL.
Upon completion of the transaction, Tim Heinze, currently head of GAPS, will become the managing director of XL GAPS. Heinze will report to John Gallagher, the global property chief underwriting officer for XL Insurance.
GAPS is a good strategic fit with our existing loss prevention services, said Clive Tobin, the chief executive of XLs insurance operations. This acquisition is intended to help us achieve our long-term growth plans in both the loss prevention market and as a primary insurer.
Both organizations have a common focus, to offer our clients high-quality risk management solutions, and we will do so by leveraging our combined engineering expertise, professional focus and state-of-the-art technology.
Our employees will have an average industry experience of 17 years, which we believe will provide unparalleled expertise in helping our clients to manage risks.
Agostino Galvagni, the head of Swiss Res global and large risks division, added: We are delighted to find an acquirer that is committed to GAPS clients and employees.