JLT has acquired the reinsurance brokerage business of Towers Watson for $US250 million ($266 million), creating “a new force” in the international market.

The two reinsurance operations will merge to form JLT Towers Re, giving combined revenues of $US266 million ($283 million) and 700 employees in 17 countries.

Ross Howard, head of Towers Watson’s reinsurance brokerage business, will become Executive Chairman of the merged operation.

JLT Re CEO Alastair Speare-Cole will become CEO of the new business, while Alan Griffin will step down as Chairman of JLT Re, retaining a board and advisory role.

The acquisition is subject to regulatory approval but should be complete before the end of this year.

“Towers Watson offers us a very strong reinsurance platform in the key North American market, as well as bringing further strength in the London market and a leading analytical capability,” JLT Group CEO Dominic Burke said.

“We see a significant strategic opportunity through the merger of the two businesses to create a formidable new force and restore client choice to the reinsurance market.”

JLT CEO for Australia and New Zealand Leo Demer told insuranceNEWS.com.au the acquisition will bring benefits to his team.

“This gives us access to unbelievable capabilities that we didn’t have before. We tend to collaborate around the world so if the guys in Australia need anything, they will get it.

“The merger is a big fillip for JLT here, and everywhere.”