‘New chapter’ for reinsurance broking giants Gallagher-Willis as $4bn merger is a done deal

Arthur J Gallagher & Co. has completed its multi-billion-dollar acquisition of global multinational re/insurance broker  Willis Towers Watson’s treaty reinsurance brokerage operations. The combined businesses will now trade as Gallagher Re, led by James Kent (pictured).

Earlier last week, the UK’s Competition and Markets Authority (CMA) closed its investigation and cleared their $4 billion business combination, which followed the collapse of an earlier agreement to acquire WTW assets after the failure of the proposed merger between Aon and WTW.

In August, Gallagher and WTW renewed their deal - this time for an initial gross consideration of $3.25 billion, and potential additional consideration of $750 million subject to certain third-year revenue targets.

Together with Gallagher’s existing reinsurance operations, the combined businesses will trade as Gallagher Re from more than 70 offices across 31 countries and incorporate c2400 colleagues.

Gallagher said the acquisition brings specialist expertise, underpinned by a portfolio of analytics capabilities including catastrophe modeling, dynamic financial analysis, rating agency analysis and capital modeling that will “immediately provide exceptional value” to insurance carriers and insurance capital providers around the world.

Gallagher Re will be led by Kent, global reinsurance CEO, who will report to Tom Gallagher, Gallagher’s CEO of global property & casualty brokerage.

“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.”

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