Artex creates international platform for growth with acquisition of Heritage Insurance Management

May 21, 2014

Artex creates international platform for growth with acquisition of Heritage Insurance Management
Deal sees Artex expand beyond North America for the first time, creating one of the largest captive managers in the world

Bermuda, 21 May 2014:

Artex Risk Solutions has today announced the acquisition of Heritage Insurance Management (HIM), the specialist captive and insurance management arm of Guernsey-headquartered Heritage Group.

Established in 1993 and led by Executive Chairman Charles Allen and Managing Director Nick Heys, HIM specialises in the creation and management of innovative and cost-effective insurance solutions — primarily for clients outside North America. It employs teams of industry experts with extensive capabilities and detailed knowledge of their specialist markets, offering both captive programs that service SME clients as well as solutions geared to the non-US, large and mega-cap multinational arena. HIM currently has annual revenues of approximately $20 million and just over 100 employees — operating in Guernsey, Malta, Gibraltar and London.

The deal will see Artex expand strategically beyond North America for the first time, with the acquisition of a fully established European-based captive management facility, which will trade as Artex International in due course.

Together Artex North America and Artex International will serve almost 1,000 captive clients, operate from 15 locations with licenses in 20 captive domiciles and employ more than 300 captive and alternative risk professionals, making Artex one of the largest captive managers in the world.

David McManus, president of Artex Risk Solutions, said: "I'm absolutely delighted that Charles, Nick and their great team at Heritage have chosen to join us at Artex. The relationship between our companies goes back many years and this merger represents about as perfect a strategic fit as I can imagine. Not only will our combined entity represent one of the largest captive managers in the world but, more importantly, we believe the highly complementary nature of our strengths, geographies and client bases will create a world-class global platform from which we can develop even stronger client propositions. Together our spectrum of expertise can simultaneously service the risk management needs of mega-cap multi-national organizations while also offering the know-how to create innovative captive solutions for small and middle market enterprises — all sourced through an independent network of insurance brokers and other trusted advisors."

Nick Heys, who will become CEO of the new international arm reporting to David McManus, added: “Heritage Insurance Management, as part of the Heritage Group, has grown substantially over the years but reached a stage whereby partnering with a like-minded organisation was necessary to realise its ambitions. Whilst we are sad to be leaving our colleagues at Heritage Group we are delighted to be joining a world-class organisation capable of taking our captive insurance business to the next level.”

ENDS

For further information, please contact:
David McManus, President, Artex Risk Solutions, Inc.
+1 (441) 294 4321 
Nick Heys, Managing Director, Heritage Insurance Management
+44 (0) 1481 704639 
Paul Eaton, New Business Director, Heritage Insurance Management
+ 44 (0) 1481 737405 
Linda Collins, VP-Corporate Communications, Arthur J. Gallagher & Co.
+1 630 285 4009 

Notes to Editors:
Heritage Insurance Management
HIM is part of the Heritage Group (Heritage), a multi-faceted financial services group, headquartered in Guernsey, which provides a broad range of offshore financial services including insurance management, underwriting agency management, fiduciary & wealth expertise, fund administration and insurance broking.

HIM is one of the largest insurance management companies in Europe with in excess of 100 employees and offices in Guernsey, Malta, Gibraltar and London. HIM manages a diverse client portfolio with facilities including protected and incorporated cells, captive insurance companies, reinsurers, and EU domiciled insurers. www.heritage.co.gg/

Artex Risk Solutions
Artex Risk Solutions (Artex) provides a diverse range of captive insurance solutions and alternative risk financing options for clients headquartered primarily within the United States. Artex has specialist staff operating from 12 office locations throughout North America, Bermuda and the Caribbean, managing captive programs for over 750 customers in 17 of the world’s most popular onshore and offshore domiciles. With 16 different industry-specific and heterogeneous programs, Artex is one of the largest specialty program managers in the industry. More than 2,000 public, private and non-profit entities participate in Artex’s various programs — in total, managing or placing more than $1 billion in insurance premium.

Artex is a wholly owned subsidiary of Arthur J. Gallagher & Co. (NYSE: AJG) — one of the world’s largest insurance brokerage and risk management services firms. Gallagher is headquartered in Itasca, Illinois, has operations in 27 countries and offers client service capabilities in more than 140 countries around the world through a network of correspondent brokers and consultants.
www.artexrisk.com