The third largest insurance broker by market value, Willis Group Holdings Public Limited Company (WSH) has entered into exclusive talks with Miller Insurance Services LLP to create a London-based wholesale specialist broking firm.
The resultant brokerage firm will trade under the Miller brand and will function as a standalone legal entity and separate Lloyd’s broker.
Under the proposed transaction, Willis’ wholesale activities involving a series of units will be transferred to Miller Insurance and in return, the existing treaty reinsurance and retail activities of Miller will come under Willis’ domain.
Willis will also become Miller Insurance’s partner with a majority stake, with the latter’s partners retaining a significant partnership.
Miller Insurance will continue to interact with clients and markets directly with its management from its new London headquarters under the Miller brand.
Miller Insurance’s 112-year rich heritage with existing client service capabilities, along with Willis’ wholesale industry and specialist skills will help the new entity to serve the global independent wholesale specialty and MGA client base.
If the talks materialize, Miller Insurance will emerge as the leading specialist wholesaler in London with access to Willis' global reach and scale, industry and product capabilities as well as outstanding client support operations.
This deal will also help both the firms to serve clients in a better manner, thereby driving growth.
As of now, this deal is under negotiation and there is no certainty that it will be carried out soon. This transaction is subject to regulatory and other customary approvals, including the final nod of Willis Group’s board and the partners of Miller Insurance.
Currently, Willis has a Zacks Rank #3 (Hold). Better-ranked insurance brokers that are worth reckoning include eHealth, Inc. (EHTH), Erie Indemnity Company (ERIE) and Validus Holdings, Ltd. (VR). All these stocks have a Zacks Rank #2 (Buy).
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