In a significant move that has the potential to reshape the reinsurance market, Willis Towers Watson (WTW) is making a strong comeback into treaty reinsurance broking through a strategic joint venture with Bain Capital. Leveraging its historical expertise, extensive global network, and cutting-edge technological capabilities, WTW aims to rebuild its presence in the industry with the support of Bain Capital’s industry experience and a proven track record of fostering growth in insurance businesses. This collaboration marks WTW’s reentry into the market after a two-year hiatus, during which it sold its treaty reinsurance operations to Arthur J. Gallagher & Co. for $3.25 billion in a bid to facilitate a merger with Aon.
The merger with Aon, initially perceived as a strategic consolidation, was ultimately blocked by the U.S. Department of Justice, citing concerns over anti-competitiveness. The consequent sale of Willis Re to Gallagher was delayed but completed in December 2021, forcing WTW to re-evaluate and pivot its market strategy. This has led to the formation of the new venture with Bain Capital. By combining their resources, both companies aim to not only re-enter the field but also innovate and provide diversified offerings in the reinsurance market, positioning themselves to capture new growth opportunities and better serve their clients.
WTW’s redefined strategy underscores a forward-looking approach that integrates its established reputation and deep industry insights with Bain Capital’s financial strength and agility. The collaboration is expected to bring a new dynamic to the reinsurance sector, introducing novel solutions and leveraging technology to enhance efficiency and customer engagement. By focusing on innovation and expanding its service portfolio, WTW hopes to regain its position as a leading force in the market and navigate the evolving landscape of the reinsurance industry with confidence.
