Jardine Lloyd Thompson Group (JLT) has inked an agreement to acquire Towers Watson’s (TW) reinsurance brokerage business, in a cash transaction valued at approximately $250m.

The acquisition is part of JLT’s strategy to establish global reinsurance brokerage operations and will unite TW’s North American and London Market reinsurance businesses with JLT Re’s international reinsurance operations, dynamic brand and strong London Market operation.

The new reinsurance company will be integrated with and rebranded as JLT Towers Re, and will have combined revenue of $266m with 700 people operating in 35 locations across 17 nations.

Additionally, both companies have inked an alliance agreement, to ensure that clients have continued access to Towers Watson’s risk consulting and software services.

Under the terms of the contract, JLT Re with continue using TW’s proprietary actuarial models and software, together with deep analytical and modeling capabilities that will be acquired with the business.

Following completion of the merger, Towers Watson reinsurance brokerage business head Ross Howard will assume the post of executive chairman of the integrated business, while Alastair Speare-Cole, current chief executive of JLT Re, will become CEO.

Ross Howard said, "Together we will have the platform, market presence and support of a strong organisation to attract and retain the very best people in the market and improve our client offering."

Pending receipt of the concerned regulatory approvals, the transaction is likely to conclude before the end of 2013, while merger will complete over the course of 2014 and 2015.