Towers Watson, a US-based risk and financial management firm, has completed the sale of its reinsurance brokerage business to Jardine Lloyd Thompson (JLT) in an all-cash deal of $250m.

The Towers Watson brokerage operations will be merged into JLT’s reinsurance brokerage unit and the combined entity will operate JLT Towers Re until full integration is completed in 2015.

JLT Towers Re CEO Alastair Speare-Cole said, "Today marks the creation of a formidable new force that will restore client choice to the reinsurance market, retain and attract the very best talent and win market share."

Towers Watson Risk and Financial Services managing director Patricia Guinn said, "We will continue to offer a full range of risk consulting, software, investment and HR-related products to our insurance company clients."

Separately, JLT and Towers Watson have inked an alliance agreement that will allow clients of both companies to benefit from the combination of Towers Watson’s risk and capital management advisory and analytical services with the increased scale, analytics and advanced brokerage capabilities of JLT Towers Re.

Guinn concluded, "For clients looking for help beyond risk consulting and software, to risk financing transactions, or to go beyond reinsurance intermediary services for help with improving their underlying business operations, the alliance offers an attractive proposition for risk and capital management."