Two insurance brokers yesterday joined forces as Jardine Lloyd Thompson (JLT) announced it had taken over Park (Bermuda) Ltd. in a deal worth up to $11.8 million.

The new combined business, which will trade on the Island as JLT Park, will have about 40 staff and is expects to place more than $400 million of premium in the Bermuda market each year.

A statement released by JLT yesterday said JLT Park would "become the largest broker in Bermuda dedicated to meeting the needs of independent brokers and their clients".

The issued share capital of Park is being acquired by JLT Risk Solutions (Bermuda) Limited from the Park Group, a portfolio company of SunTx Capital Partners, for a maximum cash consideration of $11.8m, of which $8.85m is an initial payment with the balance based on future performance.

London-listed JLT operates in 30 countries and employs more than 5,000 staff internationally. As well as being a risk management adviser and insurance and reinsurance broker, JLT is also a major provider of employee benefits administration services and related consultancy advice.

Park is a leading Bermuda independent insurance broker and has been in operation since 1989.

Paul Scope, chairman and chief executive officer of the Park Group and Mark Simons, managing director of Park (Bermuda) Ltd., will join the board and executive management team of JLT Park.

John English, the chairman and CEO of JLT Risk Solutions (Bermuda) Ltd., will continue in this role for the newly combined operation, while Mr. Scope will become president.

"The merged operation will have unparalleled strength and depth in property and casualty and financial and professional lines,"Mr. English said.

Mr. Scope said Park was very excited about the combining of the two businesses. "We recognised from the outset that the strengths of Park's business would be extremely complementary to the existing JLT business in Bermuda," Mr. Scope said.

John Lloyd, of Jardine Lloyd Thompson Group said: "JLT has been a long-standing supporter of the Bermuda market and this investment underscores our commitment to remain the wholesale broker of choice in Bermuda."