Global insurance brokerage firm Jardine Lloyd Thompson Group has confirmed that its 32%-owned French associate SIACI has entered into a deal which will result in a merger with Assurance et Conseils Saint-Honore, a Paris-based employee benefit services provider and specialist insurance broker.

Both parties will continue to trade as separate entities, but will become the operating subsidiaries of the newly formed Newstone Courtage. The transaction is scheduled to complete following approval from the Spanish insurance regulator and the French competition authority.

Under the terms of the deal, Jardine Lloyd Thompson Group (JLT) will become a 20% shareholder in Newstone and will receive net cash consideration of E21.4 million. In addition, JLT will become a 70% shareholder in SIACI’s businesses in Italy and Poland, and a 62% shareholder in SIACI’s business in Spain. As a result, JLT’s current interests in SIACI’s Itallian and Polish businesses will increase from 30% and 50% respectively.

The combination of SIACI and ACSH creates a major new force in both insurance broking and employee benefits in France and for Europe as a whole, said Dominic Burke, CEO of JLT. With Newstone as an associate of the JLT Group, we see significant opportunities to deepen our collaboration and provide a first class service to client companies around the world.