Arthur J Gallagher has signed a joint venture agreement with Jiang Tai Insurance Brokers to establish a new Shanghai-based operation, subject to regulatory approval.

Between them, the two companies are looking to establish a specialty/reinsurance broker, which will trade as Jiang Tai Re, to support Chinese businesses as they expand and develop on an international scale. The new operation is expected to launch in the first half of 2015.

Jiang Tai’s current president Frank Lu will lead the 25-strong team.

“Our international expansion strategy is to introduce Gallagher’s expertise and capabilities into stable and emerging economies — and the opportunity rarely gets larger or more rapidly emerging than China. But we were only prepared to take this ambitious step with the right partner. As one of China’s largest insurance brokers with a formidable reputation, incredibly strong client relationships and cultural values aligned to our own, Jiang Tai was the natural choice,” says Vyvienne Wade, international commercial director at Arthur J Gallagher.

We were only prepared to take this ambitious step with the right partner.

The agreement is understood to be the first joint venture insurance broker launched in the Shanghai pilot free trade zone. It sees Gallagher take a 24.9% share ownership. Other terms of the transaction have not been disclosed.