Towers Watson Completes Sale of Its Reinsurance Brokerage Business

Focus continues on risk consulting, software and other services for insurance industry

Business Wire

NEW YORK--(BUSINESS WIRE)--

Towers Watson, a global professional services company (NYSE, NASDAQ: TW), announced today the completion of its sale of the company’s reinsurance brokerage business to Jardine Lloyd Thompson Group plc (JLT) for cash consideration of $250 million.

JLT has announced plans to merge the former Towers Watson brokerage operation into its current reinsurance brokerage unit and to conduct combined business as JLT Towers Re until full integration is completed in 2015.

“While the transaction changes the way many of our clients can access intermediary services, Towers Watson’s focus on the insurance industry remains strong,” said Patricia Guinn, managing director of Risk and Financial Services for Towers Watson. “We will continue to offer a full range of risk consulting, software, investment and HR-related products to our insurance company clients.”

Towers Watson and JLT have also entered into an alliance agreement that will allow clients of both companies to benefit from the distinctive combination of Towers Watson’s risk and capital management advisory and analytical services with the increased scale, analytics and modern brokerage capabilities of JLT Towers Re.

“For clients looking for help beyond risk consulting and software, to risk financing transactions, or to go beyond reinsurance intermediary services for help with improving their underlying business operations, the alliance offers an attractive proposition for risk and capital management,” Guinn said.

Towers Watson will be discussing the impact of the sale during its quarterly earnings call tomorrow, November 7, 2013.

About Towers Watson

Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers solutions in the areas of benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at towerswatson.com.

Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as “may,” “will,” “would,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “continue,” or similar words, expressions or the negative of such terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of Towers Watson’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: a decline in client demand (for example, resulting from the reduced use of defined benefit plans); the risk of a disclosure breach of company or client data; the ability to successfully make suitable acquisitions and divestitures; the risk that the acquisition of Extend Health is not profitable or is not otherwise successfully integrated; the ability to successfully address issues surrounding the number of company shares that will become freely tradable on January 1, 2014; the risk that potential changes in federal and state health care regulations, or future interpretation of existing regulations, may have a material adverse impact on our business; the risk that our Exchange Solutions and OneExchange business fails to maintain good relationships with insurance carriers, becomes dependent upon a limited number of insurance carriers or fails to develop new insurance carrier relationships; the risk that changes and developments in the health insurance system in the United States could harm our business; our ability to respond to rapid technological changes; the ability to recruit and retain qualified employees, and to retain client relationships; and the risk that a significant or prolonged economic downturn could have a material adverse effect on Towers Watson's business, financial condition and results of operations. Additional risks and factors are identified under “Risk Factors” in Towers Watson’s most recent Annual Report on Form 10-K filed with the SEC.

You should not rely upon forward-looking statements as predictions of future events because these statements are based on assumptions that may not come true and are speculative by their nature. Towers Watson does not undertake an obligation to update any of the forward-looking information included in this document, whether as a result of new information, future events, changed expectations or otherwise.

Contact:
Towers Watson
Josh Wozman, +1 703-258-7670
josh.wozman @towerswatson.com
or
Binoli Savani, +1 703-258-7648
binoli.savani@towerswatson.com

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