AJ Gallagher

Sources have said a deal could be signed as soon as the middle of the week, with a valuation higher than the last agreement.

The brokers have offered to divest Willis’ largest corporate risk and broking clients to Gallagher’s Crombie Lockwood.

The RMS V21 model update for North Atlantic hurricane incorporated data from recent major loss years but overall annual average losses have only risen up to 10% across the US.

Richard Anson previously served as head of ceded reinsurance at Antares and reinsurance manager for Aviva.

The AJ Gallagher CEO said rate increases are providing tailwinds while the M&A pipeline remains strong.

Willis Re CEO James Kent is expected to take on the leadership of Gallagher Re following the completion of the acquisition.

The merging brokers have also agreed a two-year non-compete agreement on transferring Willis business.

There are few areas of overlap in the Willis Re-Gallagher Re combination but some details to be ironed out on the new executive team.

The AJG CEO vowed to invest in Willis Re assets while stressing the quality and security of the team.

The buyer says the deal involves revenue of about $1.3bn and earnings of around $357mn.

The merger partners are working towards a third-quarter completion after a side-deal they say addresses EC concerns.

He is expected to join the firm’s property reinsurance broking team after his gardening leave ends.