WTW announced it will return to treaty reinsurance broking via a joint venture with the private investment firm Bain Capital.
WTW will hold a minority share in the new company, said WTW in an announcement outlining its growth and value creation strategy during its investor day on Dec. 3. (More details on the joint venture will be provided during the investor day.)
“This new company will combine WTW’s rich history, leading global network and expertise in insurance broking, consulting and technology with Bain Capital’s scaled team of insurance industry experts and proven track record of building and growing innovative insurance businesses across the value chain,” said WTW in a statement.
WTW exited the treaty reinsurance market at the end of 2021 when Arthur J. Gallagher & Co. acquired those operations for $3.25 billion. WTW moved to sell its treaty business in order to make a proposed merger with Aon more palatable to competition regulators in the U.S. and EU.
However, the plug was pulled on the $30 billion merger after the U.S. Department of Justice opposed the deal as being anti-competitive. Gallagher’s plan to purchase Willis Re, which was first announced on May 12, 2021, was delayed but ultimately was finalized in December 2021.