Towers Watson (NASDAQ: TW ) will no longer be active in the reinsurance brokering sphere. The company announced that it will sell that part of its business to U.K.-based insurer Jardine Lloyd Thompson Group for $250 million in cash.
A joint press release issued by the two companies stated that Jardine will merge Towers Watson's unit with its own reinsurance operations to form the provisionally named JLT Towers Re. Combined, the two components brought in $266 million in revenue over the one-year period ending June 30, while employing roughly 700 people in 35 locations across 17 countries.
Towers Watson's current head of reinsurance brokerage, Ross Howard, will become executive chairman of JLT Towers Re. Alastair Speare-Cole, the CEO of Jardin's reinsurance arm, will also be CEO of the merged unit.
The deal is subject to approval from the relevant regulatory bodies. It is expected to close by the end of this calendar year.
Towers Watson shares closed up by nearly 3% to $102.99 on the day the deal was announced.