Insurance broker Arthur J Gallagher & Co is once again set to be a beneficiary of another firm’s mega takeover. In a re-run of its successful 2019 acquisition of part of JLT speciality – with the main deal going to Marsh – Gallagher has struck a US$3.57 billion agreement with Willis Towers Watson. Gallagher is set to receive certain reinsurance, specialty and retail brokerage operations, including the Willis direct and reinsurance space insurance businesses.
Last year Aon agreed a US$30 billion takeover of Willis in a bid to create the world’s largest insurance broker. The new Gallagher/Willis side transaction has been brought about to remedy the competition concerns of the authorities, led by the European Commission.
The agreement will transfer more than 6,000 Willis staff to Gallagher. Patrick Gallagher, Jr, Chairman, President and CEO of Gallagher, said: “This acquisition will accelerate our long-term strategy by significantly expanding our global value proposition in reinsurance, broadening our retail brokerage footprint and strengthening key niches and specialty brokerage offerings.”
From a Space insurance point of view, the merger of the Gallagher and Willis teams will create a strong competitor to industry titans Aon and Marsh.