Jardine Lloyd Thompson Group (JLT) will acquire the reinsurance brokerage business of Towers Watson for a cash consideration of $250 million.
The combined business will be branded for a transitional period as JLT Towers Re, before being known as JLT Re. The new business will reportedly have combined revenues of $266 million.
As part of the transaction, JLT Re and Towers Watson have entered into an alliance agreement that will ensure clients have continued access to Towers Watson’s risk consulting and software services.
This Agreement will also provide JLT Towers Re with continued use of Towers Watson’s proprietary actuarial models and software, alongside deep analytical and modelling capabilities that will be acquired with the business.
Upon formal completion of the transaction, Ross Howard, who is currently head of Towers Watson’s reinsurance brokerage business, will become executive chairman of the merged operation.
Alastair Speare-Cole, currently CEO of JLT Re, will become CEO of the new business.
Alan Griffin will step down as chairman of JLT Re, but will retain a board and advisory role.
Commenting on the transaction, Speare-Cole, said: "We have long admired Towers Watson as one of the best reinsurance brokers in the world. Towers Watson is known in the industry as a fierce advocate for its clients with deep specialist and analytical expertise.”
Howard added: "JLT offers our clients and our people a great opportunity to work with a company that shares our values and focus on clients. Together we will have the platform, market presence and support of a strong organisation to attract and retain the very best people in the market and improve our client offering."
