Willis Towers Watson agrees Willis Re sale to Gallagher

Written by Michael Griffiths

13/08/2021

Willis Towers Watson (WTW) has reached an agreement to sell its reinsurance arm Wills Re to Arthur J. Gallagher & Co (Gallagher).

The business will be divested for a total upfront cash consideration of $3.25bn as well as an earn-out of up to $750m in cash payable in 2025, subject to adjustments.

Completion of the deal is subject to regulatory approvals and clearances, as well as several other customary closing conditions and consultation where required.

WTW CEO, John Haley, said that following the termination of its proposed merger with Aon, the group had been “taking time to reflect” on what it had learnt in the last 16 months and how to move forward as an independent company.

Haley commented: “As part of this, we conducted a review of strategic alternatives for Willis Re, our global reinsurance business. While we highly value Willis Re and our colleagues who contribute to its success, we concluded that divestment was the appropriate path for this business and for WTW.

“We are excited about our go forward portfolio of businesses and believe we are well positioned to compete vigorously around the world and make investments to grow organically and inorganically. We are winning new business, bringing the best to our clients and actively engaging and recruiting talent.”

The transaction is expected to close before the end of the first quarter of 2022.

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