Gallagher’s WTW acquisitions to include ILS specialist Willis Re Securities

Gallagher’s WTW acquisitions to include ILS specialist Willis Re Securities

The pending acquisition of the bulk of reinsurance broking unit Willis Re by Arthur J. Gallagher & & Co. (Gallagher) will consist of insurance-linked securities (ILS) and capital market professional unit Willis Re Securities.It was announced today that Gallagher has actually consented to obtain a $3.57 billion plan of assets from Willis Towers Watson (WTW), which is a treatment divestment created to fix questions from regulators at the European Commission and other jurisdictions, to smooth passage for Aons acquisition of competing WTW in its pending $30 billion deal.
The purchase will see Gallagher acquiring reinsurance broking unit Willis Res operations worldwide, omitting mainland China and Hong Kong, a relocation that will propel the companies Gallagher Re to end up being a much bigger reinsurance broker, with significantly broadened operations, incomes and competence.
Weve now had it validated that this acquisition will see Gallagher obtaining a considerable insurance-linked securities (ILS) focused interest, as the pending offer will include on completion the Willis Re Securities unit United States and UK operations, a business spokesperson verified for us.
Gallaghers expert reinsurance broking system Gallagher Re already consists of broking teams with know-how in placing reinsurance and retrocession business with ILS fund markets and trading in collateralized structures.
The Willis Re Securities team consists of proficiency in structuring and bookrunning catastrophe bonds, as well as in reinsurance sidecar arrangements and other capital market instruments and deals, so the acquisition has the prospective to significantly broaden Gallaghers activities in the space.
The Willis Re Securities system offers guidance and proficiency to insurance coverage and reinsurance industry individuals on capital markets associated product offerings.
As a signed up broker dealership, these item offerings consist of catastrophe bonds and other ILS securities, along with derivatives structuring and issuance, capital raising activities and advisory associated to mergers and acquisitions (M&A).
Willis Re Securities likewise has its own private catastrophe bond platform, through which sponsors can access groups of ILS investors for reinsurance or retro capability through securitised transactions.
On the disaster bond side of the market, which is simpler to track, we currently have the Willis Re Securities team noted in our leaderboard as sole structuring agent or bookrunner on 11 impressive transactions, while playing a joint role on another 2 deals, representing exceptional catastrophe bond issuance totaling up to roughly $2.23 billion of limit.
The acquisition of this team has the prospective to supply Gallagher with an essential position in the ILS market, with an established expert team and broad ILS sponsor and investor contacts.
The Willis Re Securities group works closely with the Willis Re broking systems to provide clients access to capital market risk transfer services, securitisation and other alternative capital related alternatives for their placements.
Willis Re Securities operations include Willis Securities, Inc., a licensed and FINRA controlled United States broker dealer;, Willis Re Securities Europe Limited which is controlled by the UK Financial Conduct Authority; and Willis Re Securities (Hong Kong) Limited. It seems the Hong Kong business wont be transferred to Gallagher in this deal as the Willis Re operations in mainland China and Hong Kong are not included in the divestment plan.
In general, the acquisition of Willis Re will provide Gallagher with a significantly expanded worldwide reinsurance footprint.
This will consist of a growth of the companies UK and United States reinsurance operation and also offer additional scale in crucial markets within North America, Europe and Asia, in particular Canada, France, Germany, Japan, Malaysia, Singapore and Australia.
In addition, acquiring Willis Re will also offer Gallagher Re new, or bigger existing, worldwide reinsurance existence in countries including Indonesia, Turkey, UAE, Brazil, Argentina, Peru, Mexico, Colombia and Chile.
Check out:
— Aon & & Willis Towers Watson expose leadership of combined company.
— EC extends Aon– Willis Towers Watson merger deadline again.
— Gallagher likely purchaser of $3bn Aon– Willis (WTW) divestments: Report.
— EC requests feedback on sale of Aon/ WTW properties, as MMC gains skill.
— Aon– Willis Towers Watson merger deadline pressed back by EC.
— WTW assets to broaden Gallagher reinsurance worth proposition: CEO.
— Aon– Willis Towers Watson divestiture reports broaden to United States & & Bermuda.
— Aon & & WTW cite alt. capital, disintermediation & & markets in defence of merger.
— Aon & & WTW concur $3.57 bn sale of properties to Gallagher, including Willis Re.
— Aon in proactive deal to US DOJ on Willis Towers Watson merger: Report.
— Aon & & Willis Towers Watson merger may deal with EC declaration of objection: Reuters.
— If Aon/ WTW results in divestitures, AJG viewed as “best fit” for Willis Re: KBW.
— Aon & & Willis Towers Watson merger to “considerably decrease competition”.
— Willis Re divestment seen required for Aon– WTW merger to finish.
— Aon anticipated to get conditional WTW acquisition approval from EC: Reuters.
— Aon– Willis Towers Watson merger evaluated by Singapore competitors authority.
— EC investigates Aon/ WTW deal, cites competitors “concerns”.
— Aon + WTW to “extend tested model of disaster bonds”– CEOs Case & & Haley.– Aon & Willis Towers Watson to merge.

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