Global insurance broker, risk management services and consulting firm Gallagher has extended its investment in Scandinavia by acquiring specialist Swedish broker Proinova. Terms of the transaction were not disclosed.
Founded in 1989 by CEO Sten Eriksson, Proinova is family-run, headquartered in Helsingborg and has a 19-strong team. With a particular specialism in group solutions for the real estate sector, Proinova enjoys long-standing relationships with key trade associations as the provider of insurance as well as loss prevention training and claims advocacy to members. Its wider insurance broking business offers risk solutions for many related areas, such as municipalities, hotels and conferences, business property and individual real estate owners.
Scandinavia is a core area of strategic development for Gallagher and this latest deal builds on the previous acquisitions of international marine and energy broker Bergvall Marine AS, based in Norway; specialist credit, political risk and construction broker Brim AB, based in Stockholm; and property and casualty insurance broker Nordic, based in Gothenburg, which added further specialisms including life sciences, transportation and engineering.
Sweden is a potentially lucrative market for insurers. According to Agria, some 90 percent of dogs have insurance, while horsey types are also keen on insurance, with 60 percent of horses covered. In August insurtech start-up Hedvig raised some $10m to expand its core offer to younger rental market consumers, looking for app-based contents/gadget insurance.
Interestingly, Hedvig use its social conscience angle as a sales tool, promising to devote some profits to `good’ causes. This kind of virtue signalling branding looks likely to succeed in countries where social justice warriors patrol the internet, keen to big up, or pile onto companies, depending on the prevailing mood.
Offering complementary specialisms to the existing Swedish operations, Proinova enables Gallagher to strategically extend its geographic presence into the southern region of the country, while simultaneously adding new areas of expertise to expand its capabilities and product offering to clients across Scandinavia.
Anders Mjaaland, head of Gallagher’s Scandinavian operations, commented: “As we look to scale up and diversify our client offering in the region, Sten and his team are a fantastic addition to the business. In particular their strengths in real estate are highly complementary to our existing specialist practices, helping us to deliver an increasingly compelling proposition for a diverse mix of clients. We are delighted to welcome our new Proinova colleagues into the Gallagher family.”
Sten Eriksson, CEO of Proinova, said: “We’re proud of having built a successful, family-owned, specialist insurance broking firm over the last three decades and becoming part of Gallagher is the right next stage for our business, our people and our clients. Gallagher has demonstrated its commitment to the Swedish and Scandinavian markets and, as a global group, will enable us to offer an even greater range of products, services and capabilities to our valued customer base.”
Vyvienne Wade, CEO of Gallagher’s International division, commented: “Proinova is an impressive business, with high quality people who focus on culture and clients first and foremost, just as we do at Gallagher. Their location in the south of Sweden is an excellent geographic fit with our existing operations, as we look to continue our strategic growth in Scandinavia.”