The newly acquired business will become part of the firm’s Global Programmes practice group
Global reinsurance broker Gallagher Re has acquired the business and assets of Optio Group-owned Bay Risk Services, for an undisclosed sum.
Established in 2016 as a London-based, independent Lloyd’s broker, Bay Risk Services specialises in structuring and placing contracts of delegated underwriting authority.
The business aims to serve the needs of niche programme managers, MGAs, Lloyd’s coverholders and carriers seeking alternative distribution channels across a variety of specialty insurance classes – including political risk, nuclear and marine.
Bay Risk will become part of Gallagher Re’s Global Programmes practice group, led by managing partner Andrew Moss, as part of the move. The broker’s staff of eight will all remain with the business.
Gallagher Re’s UK chief executive Tom Wakefield said that its London market team of specialist binding authority brokers were an “integral part” of the practice group’s offering, which looks to serve clients with a “one-stop shop for capacity, capital, data and analytics”.
Wakefield added that expanding its London market team via “quality acquisitions” was “part of [Gallagher Re’s] growth strategy”.
“We are therefore delighted that the team at Bay Risk has chosen to join with us, here in London, to deepen our delegated authority specialism and further enhance the quality and breadth of support and services we can offer clients.
“We know that [managing directors] Andrew, Robin and their colleagues will be a great fit with our team and look forward to welcoming them into the Gallagher family.”
Meanwhile, Matthew Fosh - executive chairman at Optio Group - said: “We are delighted to have reached agreement with Gallagher Re and the Bay team to deliver what is an excellent outcome for all three parties.
“Not only will Bay flourish under the wing of a global broker with the scale and reach of Gallagher, but Optio will continue to work closely with Bay within the expanded Gallagher group, while independently focusing exclusively on what it does best – being a specialty MGA run by underwriters.”
Gallagher Re’s Global Programmes practice was launched externally in September 2022.