Jardine Lloyd Thompson to buy Tower Watson’s reinsurance brokerage unit
Jardine Lloyd Thompson Group plc (JLT) and Towers Watson have announced that JLT will acquire the reinsurance brokerage business of Towers Watson.
The cost of the deal is reported as $250 million.
A Towers Watson release stated that upon completion, their reinsurance brokerage business will be merged with JLT's reinsurance business, JLT Re, to create “a new force in the international reinsurance market with combined revenues of $266 million and 700 people in 35 locations in 17 countries.”
Dominic Burke JLT's group chief executive is quoted as saying: “Towers Watson offers us a very strong reinsurance platform in the key North American market, as well as bringing further strength in the London Market and a leading analytical capability.”
And Towers Watson stated that the acquisition “significantly accelerates JLT's existing strategy to build out its international reinsurance brokerage operations. It combines Towers Watson's well-established North American and London Market reinsurance businesses with JLT Re's international reinsurance operations, dynamic brand and strong London market operation.
“The combined business will benefit from considerably enhanced scale, capability and market presence.”
The deal has Bermuda links, with JLT Park forming when Jardine Lloyd Thompson Group acquired Park (Bermuda) Ltd, which became the largest independent broker on the island.
In January 2009, JLT Re set up an office in Bermuda under the JLT Park umbrella as one of its five production and marketing centres.