Willis Towers Watson has completed the sale of all its treaty reinsurance brokerage operations to global insurance firm Gallagher.
The new combined business will trade as Gallagher Re from more than 70 offices across 31 countries and incorporate 2400 colleagues.
According to Carrier Management, Gallagher’s plan to purchase Willis Re – first announced in May – was delayed after the plug was pulled in July on the $30bn merger of Aon and WTW. Gallagher then decided to move forward with the Willis Re acquisition in August.
Alongside the $3.25bn upfront cash, WTW will receive an earnout payable of up to $750m in 2025 in cash, subject to certain adjustments including for net debt, net working capital and net fiduciary assets.
Gallagher said in a statement that the acquisition will bring ‘specialist expertise’ and is underpinned by a portfolio of analytics capabilities including catastrophe modelling, rating agency analysis, dynamic financial analysis and capital modelling that will ‘immediately provide exceptional value to insurance carriers and insurance capital providers around the world’.
Gallagher president, chairman and CEO J.Patrick Gallagher said, ‘I’d like to officially welcome our new reinsurance brokerage colleagues to the Gallagher family of professionals. Together, we will build upon our shared focus of outstanding service, expertise and client-centric culture. I am confident the combination will deliver tremendous value to our clients, our global brokerage and risk management teams, and our shareholders.”
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