American brokerage firm Arthur J. Gallagher has signed an agreement to acquire the remaining 80% ownership stake in London-based Capsicum Re.

Gallagher, which already owns 20% stake in Capsicum Re, will assume full ownership following completion of the acquisition.

In 2013, Capsicum Re was founded by Grahame Chilton and Rupert Swallow as a joint venture (JV) with Arthur J. Gallagher.

In a statement, Gallagher said: “The parties will now continue their exclusive negotiations.

“Any deal remains subject to the receipt of necessary approvals and the execution of relevant agreements and the parties will not be commenting further at this stage.”

Capsicum Re operates as a full-service global reinsurance broker and emerged as an alternative of larger brokers.

Besides offering insurance-linked securities (ILS) backed capacity to its customers, Capsicum Re offers weather risk transfer, retrocession, industry loss warrants, collateralised reinsurance, and among others.

Last month, Arthur J. Gallagher wrapped the acquisition of a minority stake in Edelweiss Insurance Brokers after securing approval from the Insurance Regulatory and Development Authority of India (IRDIA).