Towers Watson has announced the completion of its sale of the company’s reinsurance brokerage business to Jardine Lloyd Thompson Group for cash consideration of $250 million.
JLT has announced plans to merge the former Towers Watson brokerage operation into its current reinsurance brokerage unit and to conduct combined business as JLT Towers Re until full integration is completed in 2015.
“While the transaction changes the way many of our clients can access intermediary services, Towers Watson’s focus on the insurance industry remains strong,” said Patricia Guinn, managing director of Risk and Financial Services for Towers Watson. “We will continue to offer a full range of risk consulting, software, investment and HR-related products to our insurance company clients.”
Towers Watson and JLT have also entered into an alliance agreement that will allow clients of both companies to benefit from the distinctive combination of Towers Watson’s risk and capital management advisory and analytical services with the increased scale, analytics and modern brokerage capabilities of JLT Towers Re.
“For clients looking for help beyond risk consulting and software, to risk financing transactions, or to go beyond reinsurance intermediary services for help with improving their underlying business operations, the alliance offers an attractive proposition for risk and capital management,” Guinn said.
Towers Watson will be discussing the impact of the sale during its quarterly earnings call tomorrow, November 7, 2013.
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