INSURANCE broker Jardine Lloyd Thompson paid £10m in cash for a controlling stake in Chile’s number four broker yesterday as it completed the deal announced in June.
JLT said it had gained control of broker Orbital Corredores de Seguros after completing the purchase of a 50.1 per cent stake in Alta, its parent company. Alta also runs Alta Re, a reinsurance unit.
Under the deal’s terms, JLT also has an option to increase its stake in Alta to 75.1 per cent in 2020, depending on the profitability of the business at that time. Alta made a £2.1m profit on net revenues of about £5.1m in 2010.
JLT’s Latin America chief executive Vyvienne Wade said the acquisition would “add significantly to our capabilities in the region” as both Orbital and Alta Re are “leading firms in Chile’s well established market”.
Lloyd’s broker JLT has shrugged off the turbulent environment to continue its growth strategy this year. Its founder and lead investor, Jardine Matheson, paid £166m to raise its stake to 40.4 per cent last month.