Global insurance brokerage WTW has confirmed its intention to re-enter the treaty reinsurance broking market via a joint venture with private investment firm, Bain Capital, with WTW set to hold a minority share in the new company.
At its 2024 Investor Day later today, WTW will outline its growth and value creation strategy, which includes a return to the treaty reinsurance marketplace after the sale of Willis Re’s treaty reinsurance brokerage operations to Gallagher for $3.25 billion in 2021.
Last year, rumours emerged that WTW was considering re-entering the treaty reinsurance broking business, and the company has now confirmed that this is the case through a joint venture with Bain Capital.
“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,” says WTW.
The global broking group describes its re-entry into reinsurance as a strategic and thoughtful approach as it looks to enhance its business mix, stating that the new business will offer high growth potential as it scales.
“Over the last three years, WTW has successfully executed on its Grow, Simplify and Transform strategic priorities to revitalize the company,” said Carl Hess, WTW’s Chief Executive Officer, ahead of the Investor Day.
“We have grown through strategic investments in talent and technology, streamlined our operating model to drive efficiency and agility and transformed our cost structure and infrastructure. WTW has emerged more profitable and faster growing, and today we unveil our plans to further strengthen our business. We will build on our recent momentum to accelerate our performance, enhance efficiency to drive margin improvement and optimize our portfolio through organic and inorganic investment. We are moving forward from a position of strength and will continue to execute, innovate and create value for our shareholders,” he added.
