Willis Group Adds IFG Group Businesses, Boosts Irish Base
Willis Ireland, a part of Willis Group Holdings plc (WSH), acquired a range of Irish pension and financial advisory businesses from IFG Group plc.
Acquired businesses include leading pensions consultancy and administration business IFG Pensco Ltd, financial advisory companies Retirement Strategies Ltd and IFG Private Clients Ltd,, professional trustee company Planlife Trustee Services Ltd, and trade credit broker Trade Credit Brokers Ltd. The buyout will solidify Willis Ireland's present pensions business apart from strengthening its operational performance and commitment to improve wealth-planning services. The takeover will also add top industry platforms and technology for defined contribution pensions to Willis Ireland’s portfolio.
The company noted that the Irish human capital and benefits sector offers growth potential by virtue of changing demographics and increasing awareness for retirement savings. The acquisition will thus help it capitalize on the opportunities offered by the market besides leveraging its presence.
The acquisition will also aid Willis Group to solidify its global Human Capital and Benefits practice and ramp up its inorganic growth profile. With the same objective, Willis Group agreed in May, to the takeover of a 75% equity interest in Max Matthiessen for $205 million. Though the financial terms remain undisclosed and the transaction is pending regulatory approval, the company is backed by a strong financial position for strategic acquisitions.
Willis Group and its subsidiaries have been adopting an inorganic route to expand their business and global footprint and thereby the growth trajectory. In May, Willis Group acquired Charles Monat Limited, a market-leading life insurance solutions advisor. Willis North America acquired Alabama-based Capital Strategies Group, Inc., an employee-benefits consulting division of Birmingham in January.
Willis Group presently carries a Zacks Rank #3 (Hold). With dismal second-quarter performance wherein earnings missed the Zacks Consensus Estimate and deteriorated year over year, the stock witnessed a downward revision in estimates. However, with optimism surrounding the current acquisition, we expect analysts to raise their estimates, exerting upward pressure on the Zacks Rank.
Other insurance brokers which acquired equity interest in other companies include Marsh & McLennan Agency LLC (MMA.V), a subsidiary of Marsh & McLennan Companies, Inc. (MMC), Brown & Brown, Inc. (BRO) and Arthur J Gallagher & Co. (AJG). In August, Arthur J. Gallagher & Co. announced four acquisitions. In June, Brown & Brown Inc. acquired select assets of Gaston & Associates. Also, Marsh Inc., the insurance brokerage wing of Marsh & McLennan Companies Inc. announced its intention to acquire a major stake in Panama-based SegurosMorrice y Urrutia SA (Semusa) in June.
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