Willis Towers to sell reinsurance unit to Arthur J. Gallagher for initial cash consideration of $3.25 billion

Insurance broker Willis Towers Watson PLC said Friday it has reached an agreement to sell its reinsurance unit Willis Re to Arthur J. Gallagher & Co. for an initial consideration of $3.25 billion in cash. The deal includes another up to $750 million in cash to be paid in 2025 subject to certain adjustments. The deal comes after Willis Towers and Aon ended a plan to merge in late July following a Justice Department lawsuit. "Following the termination of the proposed combination with Aon, we have been taking time to reflect on what we have learned about WTW over the last 16 months and determine how we will move forward as an independent company," Chief Executive John Haley said in a statement. "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." The deal is expected to close no later than the end of the first quarter of 2022. Willis Towers shares rose 2.6% premarket before falling back to up 0.3%. The stock has gained 5% in the year to date, while the S&P 500 has gained 18.8%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Willis Towers to sell reinsurance unit to Arthur J. Gallagher for initial cash consideration of $3.25 billion
Insurance broker Willis Towers Watson PLC said Friday it has reached an agreement to sell its reinsurance unit Willis Re to Arthur J. Gallagher & Co. for an initial consideration of $3.25 billion in cash. The deal includes another up to $750 million in cash to be paid in 2025 subject to certain adjustments. The deal comes after Willis Towers and Aon ended a plan to merge in late July following a Justice Department lawsuit. "Following the termination of the proposed combination with Aon, we have been taking time to reflect on what we have learned about WTW over the last 16 months and determine how we will move forward as an independent company," Chief Executive John Haley said in a statement. "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." The deal is expected to close no later than the end of the first quarter of 2022. Willis Towers shares rose 2.6% premarket before falling back to up 0.3%. The stock has gained 5% in the year to date, while the S&P 500 has gained 18.8%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.