AJ Gallagher

The acquisition of Willis Re last year transformed Gallagher into a top-three reinsurance player.

Sources told this publication Tom Draper would become head of insurance at the expansive MGA’s European operation.

Despite an increased risk environment, capacity has increased for political risks, trade risks political, trade risks commercial and non-trade insurance, the broker said.

The protracted firming phase of the cycle continues, with E&S firmer than the admitted market.

The two brokers reported quarterly earnings and were optimistic about the coming year.

CFO Douglas Howell told analysts that the giant broker currently has $4bn to spend on M&A opportunities over the next four years.

The consolidated organic growth number was Gallagher’s best of the year, and a sharp increase from its 2.6% growth level a year ago.

Hvidsten had worked at Willis Re since 1997, before it was bought by Gallagher, and will continue to serve as a consultant to the firm.

Liz Kim is joining Gallagher Re’s 40-plus-strong cyber team from Hiscox, where she has spent more than 12 years.

The broker urged cyber insurance buyers to factor in terms and conditions such as restrictive coverage and exclusionary language in sizing up their purchases, as rates climb higher.

With most M&A activity from 2020 pushed into 2021, capacity for M&A insurance began to dry up in around October, resulting in hard market conditions.

Rates are up modestly across the board but reinsurers are "under pressure" to improve profitability.