AJ Gallagher completes on WTW reinsurance business
AJ Gallagher has announced the completion of its purchase of “substantially all” of Willis Towers Watson’s treaty reinsurance brokerage operations. The $3.25 billion deal expands Gallagher Re’s footprint to 70 offices across 31 countries and 2,400 staff.
The combined business will be led by James Kent, global reinsurance CEO, who will report to Tom Gallagher, Gallagher’s CEO of global property and casualty brokerage. The agreement also includes Willis Re’s securities unit, which structures and manages cat bonds and other ILS deals.
“This acquisition brings specialist expertise, underpinned by a portfolio of analytics capabilities including catastrophe modelling, dynamic financial analysis, rating agency analysis and capital modelling that will immediately provide exceptional value to insurance carriers and insurance capital providers around the world,” Gallagher said in its announcement.
The completion follows last month’s conclusion of the Competition and Markets Authority investigation, which cleared the deal.
First announced in August, the acquisition will cost Gallagher $3.25 billion, plus an earnout payable in 2025 of up to $750 million in cash. It followed the breakdown of earlier talks following the collapse of the proposed tie-up between Aon and WTW.
“I’d like to officially welcome our new reinsurance brokerage colleagues to the Gallagher family of professionals,” said J Patrick Gallagher Jr, chairman, president and CEO. “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.”
Kent added: “This combination marks a new chapter for two remarkable reinsurance broking teams as well as for our valued and extremely supportive clients and stakeholders. We are bringing together highly complementary and well-respected reinsurance businesses to create a truly compelling unified reinsurance platform. I am incredibly proud to be leading Gallagher Re into its next phase of growth.”