JLT takes majority stake in Chilean firm in an effort to add global reach
INSURANCE broker Jardine Lloyd Thompson agreed to buy a controlling stake in Chile’s fourth-biggest broker yesterday in a bid to strengthen its presence in the fast-growing Latin America region.
JLT will buy 50.1 per cent of Alta, the holding company of Orbital Corredores de Seguros, a broker that has been a member of its international partner network since last year.
The Alta stake also includes control of Alta Re, a reinsurance broker that started up last year. As part of the deal, JLT has the option to add a further 25 per cent to its stake in 2020.
Orbital joins previous JLT takeovers in Brazil, Columbia and Peru and as with those, the business’ owners will retain a stake and both the chief executive and chairman will stay in post.
“Chile is a well established insurance and employee benefits market and this acquisition will add to our presence in the region,” said JLT’s Latin America chief executive Vyvienne Wade.
It did not disclose the amount paid for the stake in Alta, which made $8.1m (£5m) net revenue and $3.4m pre-tax profit last year. It expects the deal to close in the second half of the year.
RBS analyst Joanna Parsons said the deal was “a further piece in the jigsaw of building JLT’s Latin American operation and we see it as a definite positive in terms of strategic development.”
JLT is the London Stock Exchange’s largest listed broker, floating in 1991 before merging with rival Lloyd Thompson in 1997.