Broker Arthur J Gallagher & Co has announced an agreement to acquire Willis Towers Watson’s treaty reinsurance brokerage operations in a £2.35bn deal that is expected to conclude before the end of the year. Willis Re’s treaty reinsurance business operates in 24 countries, places more than £7.22bn of premium annually and represents over 750 insurance and reinsurance company clients.

In addition to the initial gross consideration of around £2.35bn there is a potential additional consideration of £542m, subject to certain third-year revenue targets.

J Patrick Gallagher Jr, chairman, president and CEO of Arthur J Gallagher & Co, said: “Broadening our reinsurance brokerage offerings has been a strategic objective at Gallagher and this acquisition will significantly enhance our global value proposition.

“We were very impressed with the Willis Towers Watson reinsurance professionals we met during our initial due diligence and strongly believe a combination will significantly enhance our offerings to clients and prospects. I look forward to welcoming the 2,200 new colleagues joining us as part of this transaction to our growing Gallagher family of professionals.”

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