Arthur J Gallagher (AJG) has acquired a 65% stake in independent Colombian energy and construction reinsurance specialist ARM Re (ARM).

This marks the insurer’s entrance in Colombia and its expansion into the Latin America market, following from the creation of insurance operations in Chile in 2013 and the entry into Peru with a stake in reinsurance specialist JAO & Partners last year.

Established nine years ago, ARM is led by Fernando Tellez and specialises in construction, energy and mobile equipment risks, handling facultative business across terrorism, transportation, property, third-party liability, and contractors’ machinery and equipment. AJG entered into an agreement to buy ARM mid-way through last year and regulatory formalities have now been completed.

The new operation in Colombia, Latin America’s third-largest economy, will be led by chief executive Carlos Rodriguez Angulo, formerly head of sales and partner at JLT Re Colombia. He joined ARM last year at the time AJG contracted to buy the shareholding in ARM. Fernando Tellez takes the role of chief operating officer.

Vyvienne Wade, international commercial director at AJG, says: “Our investment in ARM creates the perfect platform upon which to realise our ambitious plans for expansion in one of the strongest-performing Latin American territories. Gallagher will continue to invest in compelling opportunities where we see profitable businesses run by experienced, entrepreneurial teams that are symbiotic to our existing London-based specialty expertise.

“Together Carlos, Fernando and their colleagues create a formidable team, focused on strong growth and the provision of powerful specialty client propositions in a strong, stable and successful country.”

Rodriguez Angulo comments: “Securing the backing of a major international brand like Arthur J Gallagher is exactly what we need to take the business to its next exciting level. (…) The first year of operations within the Gallagher network has seen us nearly triple our customers, revenues and professionals.”